IU Health to Lay Off 800 Employees

 
 

IU Health has announced they will be laying off approximately 800 employees by December in an effort to improve productivity and cut down on expenses. In a letter that was reportedly sent to IU Health team members from CEO Dan Evans, IU Health has significantly reduced labor costs with flexible scheduling and by not filling open positions, but those reductions have not been enough.

The letter explains that IU Health adopted a goal of improving productivity by 25 percent over the next five years because the company believes that “the future reimbursement environment, from all payers, will look much like Medicare does today,” and in order to manage “population health” well, the hospital system must invest in new technologies and advances in the face of worsening reimbursements.

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