MISHAWAKA — Franciscan Alliance announced today that the health system is responding to the transformative shift in hospital economics with systemwide staff reductions.
The reductions will affect its 11 hospitals and health facilities in Indiana. 275 employees or 1.4% percent of the workforce will be laid off as a result of the reduction. Franciscan Alliance has approximately 20,000 employees.
The healthcare industry is changing rapidly and economic pressures are forcing substantive changes in the field, including reduced reimbursements, new payer models, healthcare reform laws and shifts from inpatient to outpatient care.
“Franciscan Alliance has not been immune to such pressures and has found it necessary to align staffing levels to reflect lower patient volumes and reduced industry wide reimbursements brought on by reforms associated with the Affordable Care Act,” said Kevin Leahy, Franciscan Alliance president and chief executive officer.
