Franciscan Alliance to lay off 275 employees

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INDIANAPOLIS, Ind. (Oct. 23, 2013)– An Indiana healthcare system, Franciscan Alliance, announced they would lay off 275 employees across its 11 hospitals and health facilitates in Indiana.

Officials said the layoffs are in response to rapid changes in the healthcare industry and economic pressures, which are forcing changes in the field.

“Franciscan Alliance has not been immune to such pressures and has found it necessary to align staffing levels to reflect lower patient volumes and reduced industry wide reimbursements brought on by reforms associated with the Affordable Care Act,” said Kevin Leahy, Franciscan Alliance president and chief executive officer.

The healthcare system said they would cut the costs of care delivery over the next three years by 15 to 20 percent. In addition to laying off 275 employees, officials said another 650 full-time equivalent positions will be eliminated by cutting back on assigned hours, closing open positions, retirements and through attrition.

The remaining 19,000 Franciscan Alliance employees will see cutbacks in benefits beginning next year.