Updated 6/21, 11 am
Mercy has announced they will be laying off just under one percent of their staff in a “restructuring” move tied to reduced government funding.
Mercy said that “less than 1 percent” of employees will be impacted, or less than 450 employees, as Mercy employs 45,000 across the organization’s four state area. Spokeswoman Sonya Kullmann told OI that the number will likely be much less than the one percent figure, “nowhere near” 450 employees.
Mercy released this statement:
Mercy, along with other health care providers, continues to be challenged by reduced reimbursement for the services we provide, especially from Medicare and Medicaid which do not fully cover the costs of care. At the same time, we are experiencing increased expenses for labor in an increasingly competitive job market, as well as rising costs for drugs and supplies.
While we will not compromise the outstanding quality of care we provide to our patients, we must work as efficiently as possible. That is why are restructuring this week, reducing targeted positions and moving some co-workers into new roles. The changes affect less than 1% of Mercy’s 45,000-member workforce.
Our transition plan for co-workers who are impacted reflects Mercy’s commitment to dignity and compassion. Our hearts and prayers go out to our affected co-workers and their families. They will receive help finding new jobs and a severance package including compensation and benefits based on their position and length of service.