Allina Hospitals & Clinics, Minneapolis, has cut 110 corporate jobs and 200 at its flagship 627-bed Abbott Northwestern Hospital, Minneapolis, after a sharp decline in net income during the first nine months of 2006.
Lower patient volumes and costs associated with new information systems for medical records and billing contributed to the decline, according to unaudited financial statements.
The 11-hospital system will make decisions about further job cuts by mid-December after finalizing its 2007 budget, a spokesman said. Allina earned net income of $47.5 million on revenue of $1.8 billion during the nine months, down from net income of $106 million on revenue of $1.6 billion in the year-ago period, according to the financial statements.
The spokesman said the job cuts included 45 layoffs from a corporate staff of 1,500 and 55 layoffs among administration and management staff at Abbott Northwestern, while 35 union employees were transferred to new positions, all within the past month. The remaining jobs were eliminated through attrition throughout 2006, he said. The hospital previously employed 5,200 full- and part-time workers.