For the first time in its nearly 100-year history, Orlando Health is reducing its workforce by up to 400 positions starting immediately, hospital officials announced this morning.
The elimination of 300 to 400 jobs will occur in two phases, and represents a 2- to 3-percent decrease in the system’s 16,000 employees, said Orlando Health spokeswoman Kena Lewis. The reductions affect all departments and all eight of its hospitals, including Orlando Regional Medical Center and Arnold Palmer Hospital for Children.
The first wave of employees affected by the “labor expense reduction” portion of the initiative received their notices Friday, said Lewis. The next wave of downsizing will happen after the first of the year.
The non-profit health network also will reduce positions through attrition of the workforce and by not filling any new positions, Lewis said.
Other aspects of the cost restructuring include eliminating “admirable but not sustainable” programs, streamlining some health-care delivery systems and supplies, and delaying capital spending.
However, the hospital system will move forward with its $300 million expansion and renovation of Orlando Regional Medical Center, which is underway, and its $50 million acquisition of Physician Associates, a large, primary-care medical practice, which is set to be complete Dec. 31.
Orlando Health officials called the move necessary.
“Health-care reform mandates and changes in reimbursement structures for Medicare and Medicaid are forcing health-care organizations throughout the U.S. to confront new challenges,” said Sherrie Sitarik, president and CEO of Orlando Health. “We must find better ways to deliver enhanced value to patients and lower the overall cost of care.”