TERRE HAUTE, Ind. (WTHI) - In the past week, two major hospital groups in the Indianapolis area announced they're making cuts in staffing.
Last week IU Health announced the cut of 800 jobs. This week, Community Health Group also announced a reduction in its work force.
For the last five years, Union Hospital has made the list of top places to work in Indiana. According to Union's interim CEO, those who work at Union do not face layoffs.
"To make a reduction in force is a big deal. It's very painful for the organization as well as the person being affected,” said Kym Pfrank, Union interim CEO. “So we strive not to do that unless we have to."
Pfrank says Union is able to save jobs because it has cut $20 million from its budget since 2009. But Union knows more cuts are coming.
Union's patient discharges are down by six percent from the previous fiscal year. Pfrank also says the health care industry is facing drastic cuts thanks to the Affordable Care Act.
"About $500 billion from the Medicare budget and $156 billion directly out of hospital payments," she explained.
Over the next three years, the federal government told Union it can expect cuts in Medicare reimbursements, starting with a $6 million reduction in 2014.
"In 2015, we can expect another $7 million and in 2016 probably another $7 million after that," Pfrank said.
Despite these cumulative cuts, Pfrank says Union will continue to look at ways to cut expenses - not staff.
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