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Cleveland Clinic President and CEO Dr. Delos
Cleveland Clinic President and CEO Dr. Delos "Toby" Cosgrove

Cleveland Clinic reports nearly 700 employees to take early retirement


By Timothy Magaw, Crain's Cleveland Business
Posted: January 30, 2014 - 10:00 am ET
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The Cleveland Clinic said that nearly 700 employees accepted early retirement offers, which are part of the health system's ongoing effort announced last September to trim $330 million from its budget.

In addition, the Clinic, which boasts annual operating revenue of about $6 billion, said it eliminated “several hundred” open positions, which allowed the organization to keep layoffs to a minimum. The health system did not disclose the number of layoffs. When the budget reductions were announced in September, the Clinic said it would offer early retirement plans to 3,000 eligible employees.

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“These are always difficult decisions and we regret the loss of any jobs,” the Clinic said in a statement. “We will continue to evaluate our services and the way we work moving forward, just as health care systems across the country will need to do. At the same time, we will continue to hire for positions that are critical, and we will continue to grow to ensure our future is strong, to protect jobs and to provide the best care to our patients.”

The Clinic's budget reductions were due, in part, to declining reimbursements from government and commercial payers. In addition, there continues to be a veil of uncertainty in the healthcare industry as the Affordable Care Act takes hold.

Other local health systems — Summa, Akron General and MetroHealth, for example — also have shed workers in recent years. University Hospitals, meanwhile, has trimmed $180 million in expenses from its books.

According to Crain's research, the Clinic employs more than 33,000 full-time-equivalent employees in a 15-county area in Northeast Ohio, making it by far the region's largest employer.

"Cleveland Clinic reports nearly 700 employees to take early retirement" originally appeared on the Crain's Cleveland Business website.


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