IU Health to lay off 800 employees

The IU Health system announced Thursday it would eliminate 800 jobs by the end of the year. This amounts to a total reduction of 2 percent of its overall workforce.

“Nobody’s job will be the same” after these cuts have been finalized, President of IU Health Methodist and University Hospitals Jim Terwilliger said.

Employees affected by the layoff should be notified of the decisions Oct. 1, with the cuts going into effect Dec. 1.

The staff cuts are expected to affect IU Health hospitals across the state, Terwilliger said.

“We are trying to operate and be successful in what is a rapidly changing industry,” he said.

The cuts were first announced to IU Health employees in an email sent by IU Health Chief Executive Officer Dan Evans. In the email, Evans identifies the IU Health Academic Health Center, IU Health Ball Memorial Hospital, the North Central Region (IU Health North, Saxony and Tipton hospitals) and System Services as the areas that will be affected by the cuts.

For the first time, IU Health will offer an early retirement option to employees who are at least 62 years old and will not reach 65 before Dec. 31, 2013.

“We are aware of the impact these cuts will have on our employees and their families,” Evans said.

In his email, Evans stressed loyalty to employees and staff.

“Consistent with our values of mutual trust and respect, we will make every effort to support all IU Health team members through this difficult transition,” Evans said. “Team members whose jobs are impacted by this workforce reduction will be notified in early October and will be provided with severance and outplacement assistance.”

IU Health Bloomington released a similar statement regarding the budgetary and staff cuts this morning. IU Health Bloomington has embraced efforts to find cost savings and become more efficient, President and CEO Mark Moore said.

“Such efforts alone simply aren’t enough,” Moore said.“We anticipate that some positions may be eliminated in order to meet our financial targets that are necessary due to shrinking reimbursement. The specific number of positions is not known and will be lessened by attrition. Any actions we must take will not adversely impact patient care. Consistent with our values, we will make every effort to support all IU Health team members through this transition.”

Follow reporter Grayson Harbour on Twitter @GraysonHarbour.