Indiana hospital network blames Obamacare for jobs cuts

A health network in Indiana announced it would be making major cuts to its job force because of Obamacare.

In an effort to cut 295 jobs, the Franciscan Alliance Hospital Network handed out layoff notices to 275 employees, only the beginning round of cutbacks.

Employees who don’t get laid off will still be affected. The hospital network plans to cut hours and benefits for remaining full time employees starting next year.

From the press release: The healthcare industry is changing rapidly and economic pressures are forcing substantive changes in the field, including reduced reimbursements, new payer models, healthcare reform laws and shifts from inpatient to outpatient care. 

“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.

Another 650 full-time positions will be eliminated by cutting back on hours, closing open positions, retirements and through attrition.

Franciscan Alliance Spokesman Joe Stuteville says 83 of the 275 positions are in Indianapolis. He says the Franciscan Alliance, like other health systems,  must cut its costs of care delivery over the next 3 years by 15 percent to 20 percent to remain viable.

“Most of these cuts take place immediately, there may be some several day lags,” Stuteville said.

Officials say the affected employees will be offered a severance, extended health insurance, and counseling services.

The first 275 layoffs are effective immediately.

Franciscan Alliance is the newest health organization in Indiana to announce massive cuts. In September, IU Health Systems announced an 800 job reduction and also cited the Affordable Care Act as the reason for the layoffs.