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Re-shaping Our Workforce for FY 2010
As part of our ongoing efforts to reduce expenses, UI Health Care senior management has made the difficult decision to implement additional cost-savings measures that will reshape our workforce.
We will reduce the size of our 6,600-member workforce at UI Hospitals and Clinics by eliminating some filled positions. The positions being eliminated will result from normal attrition, normal retirements, and layoffs. In addition, many vacant positions will remain unfilled. We are also exploring additional alternatives to help achieve a further 2 percent reduction in our operating costs.
We regret the necessity of these difficult decisions, and have worked very hard to avoid having to take these steps. Although we have decreased the cost of supplies and eliminated more than $23 million in costs this year, it has not been enough. Like many other academic medical centers and hospitals of all sizes across the country, the overall economic situation has had a major, negative impact on UI Health Care. We have tried to be as innovative as possible in seeking out creative ideas for cost reduction and promptly implementing them.
Today’s economy demands that we must manage our expenses as rigorously as possible. The reality is that the world of health care delivery and payment is changing rapidly, even daily. We must respond quickly to these changes and assure that our organization does not lose ground.
Making the decision to eliminate positions, impacting our employees’ lives, was a painful process. However, my responsibility as a leader is to do the right thing for the sustainability of the organization. Failure to achieve a balanced budget with a 1 percent operating margin will place UI Health Care at risk.
What’s the risk? The risk is more than “just jobs,” as important as jobs are. Without taking action now, we are placing at risk our ability to continue serving the state as the regional leader in complex care, in advanced technology, in attracting and retaining the best and the brightest faculty, students, and staff, and in remaining the strong economic engine that the state relies upon to help attract business and industry.