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.

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