IU Health to lay off 800 employees

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Indiana University Health will cut about 800 employees by December in a move to cut costs.

The Indianapolis-based hospital system said it must make the cuts because fewer patients have been coming to hospitals and payment rates for its services have been declining.

It’s the second mass layoff by an Indiana hospital system this year. In late June, Indianapolis-based St. Vincent Health announced it was cutting about 865 people due to similar financial pressures.

The cuts at IU Health will affect seven hospitals, most of them in Indianapolis: IU Health Methodist Hospital, IU Health University Hospital, Riley Hospital for Children, IU Health North Hospital, IU Health Saxony Hospital, IU Health Tipton Hospital and IU Health Ball Memorial Hospital in Muncie.

“Hospitals across the country are seeing continued declines in admissions,” said Jeff Sperring, CEO of IU Health’s Riley Hospital for Children. “These changes are reflective of those declines in admissions.”

The job cuts are part of a larger effort by IU Health to cut more than $1 billion in expenses over the next four year.

IU Health had about 27,000 full-time-equivalent employees statewide in 2012, according to IBJ research.

An update to this story can be found here.


  • LPNs Laid off
    Community Hospital East just laid off most of their LPNs. I know because my neighbor has a sister who was one of them and her career spanned 36 years but that made no difference. I was laid off too in 2010 along with about 800 other people. I spoke with someone the other day in there and I said are the layoffs still happening? She told me that they have to stop because they are getting so short staffed it's hurting things. What are they thinking anyway? This is healthcare and caring for the patients not a car dealership.
  • JonE
    IUH is expanding their base, they are just right sizing their expense structure, and becoming more efficient to operate effectively under the new reality. Perhaps you should get over it.
  • Jason
    So, Jason, you're saying that Anthem is so upset at IUH's participation with MDWise that they blackballed the entire IU Health system, and have chosen to fire workers rather than try to enlarge their potential customer base? This is cutting off your nose despite your face, and is so ridiculous that it rivals (or reflects) the current government shutdown. Both Obamacare and MDWise are happening. Get over it.
    • JON E
      IU and Stv have not decided to exclude themself from Obamacare, they are participating exclusively with MDWise's Marketplace product. Actually, a more accurate statement would be that Anthem decided not to let them participate in the Anthem product.
      • decisions have consequences
        IU Health and St. Vincents have decided not to participate in ObamaCare. That newly insured business will flow to Community Hospitals and elsewhere. No sympathy for bad decisions.
      • What about Dan Evans?
        IU Health says they want to save all of this money and they have no problem saying goodbye to their employees. How much of a cut is Dan Evans taking?? Or, for that matter, are any other IU Health execs giving up something? I'd bet a billion bed pans they're not giving up a dime. After all, shouldn't the executive suite give something back seeing how it was their decisions that got IU Health to where they are today??
      • Less money for hospitals
        I can't speak to the staffing levels, but all hospitals are having to undergo changes currently due to reduced reimbursement rates by Medicare and subsequent reduced rates by insurance companies as they see Medicare paying out less. Less money available means the hospitals are all having to make cuts. Even the non-profits have to cut back somewhere... if the money isn't available, then you have less of it pay your workers.
      • A Hospital Every Where You Look
        With admissions trending down, why have hospitals built new facilities all over the city duplicating overhead (Meridian and I69)? Out of greed they have they not overbuilt and cannibalized themselves?
      • Need an explanation
        Does this really mean that over 800 employees can be dropped with zero negative effect on the quality of care? How can that possibly be true. Have they been THAT overstaffed all this time, same as St. Vincent? If so...that partially explains why our medical bills are so high. How was this overstaffing allowed to happen?

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