Indiana University Health is restructuring operations and cutting some leadership roles.
IU Health is consolidating its six operational regions to four, according to a Friday news release. The health system expects the changes to affect about 100 jobs, a spokesperson said.
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The health system has created roles or tweaked existing ones to support the restructuring and is encouraging employees affected by job cuts to apply for other open positions, according to the release. Most of the cuts will affect non-clinical leadership roles.
"This was not a cost-cutting exercise, nor was the goal of this effort to eliminate roles. Rather, it’s improving organizational design and effectiveness," an IU Health spokesperson said.
Indianapolis-based IU Health operates 15 hospitals across Indiana and employs about 38,000 people. It reported net income of $944.5 million in the first nine months of 2024, compared with $578.5 million in the year-ago period.
The spokesperson said the new structure is expected to be in place by January.
IU Health believes restructuring will strengthen clinical care models, improve talent pipelines and allow the system to invest more in technology, President and CEO Dennis Murphy said in the release.
IU Health is one of several health systems looking to improve operating performance through recent restructuring efforts. In 2022, Renton, Washington-based Providence condensed its seven regional divisions into three and trimmed the executive team in response to challenges, including staff shortages, inflation and supply chain disruptions. In 2023, Philadelphia-based Jefferson Health consolidated five divisions into three, also in response to financial challenges.
