NorthShore University HealthSystem is offering voluntary retirement to about 300 employees, a move to trim expenses as the implementation of key parts of the federal healthcare law looms.
If all eligible employees take the offer, the retirements would reduce the Evanston, Ill.-based system's 10,000-person workforce by about 3 percent, says a spokesman for NorthShore.
The offer, which was described yesterday in a letter to workers, comes on the heels of a June 17 announcement that NorthShore will freeze its employee pension plan as of Dec. 31 and shift all employees to a defined-contribution savings plan, another cost-cutting maneuver.
“The state of healthcare finance is changing at an unprecedented pace and NorthShore must adapt and change to meet these fiscal challenges,” Chief Human Resources Officer William Luehrs wrote in the letter. The pension change and workforce reductions are needed “to get ahead of the sizeable upcoming payment reductions associated with the Affordable Care Act before the start of the new fiscal year.”