The University of Alabama at Birmingham Health System said it is cutting 245 jobs to save an estimated $15 million to $20 million a year, following the results of a performance review.
UAB cutting 245 jobs
The jobs are primarily in nonpatient-care support areas, according to the health system. Of the jobs cut, 81 employees will be rehired into positions currently being held by non-UAB contractors.
The move comes after a four-month workforce productivity review conducted by Navigant Consulting at the request of Will Ferniany, who took over as CEO last September. The external consultants worked very closely with health system executive administration and the managers of current processes and work areas to identify options, Ferniany said in an e-mail.
For fiscal 2008, UAB posted a $72 million loss, a net income drop of more than 150% from the previous year. The systems net patient revenue dropped by $57 million, the same amount by which its bad debt grew during the year, according to unaudited figures submitted by the system to Modern Healthcare.
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