Allina announces plans to cut jobs

From Modern Healthcare:

Allina Hospitals & Clinics, Minneapolis, announced plans to cut up to 350 jobs in coming weeks in the second round of staff reductions this year for the 11-hospital system.

Administrators at all of the system’s facilities have been asked to find jobs that could be cut, although officials hope to reduce the workforce by attrition, spokesman David Kanihan said. The goal is to reduce the 23,000-employee workforce by 1% to 1.5%, or 250 to 350 jobs. Last fall, Allina cut about 200 full-time positions, Kanihan said.

“All locations are being asked to take a look at how they can operate in a more efficient manner,” Kanihan said. “It really affects every part of Allina.” Among the employees being laid off is Chief Administrative Officer Gary Strong, who was hired in July 2007.

Rising levels of bad debt and the faltering economy are to blame, although Allina is also trying to cut costs as it makes several new investments, including a new care model, Kanihan said. Company officials hope the new investments will create enough growth in the next two years to refill all of the positions being vacated this year.