Franciscan Alliance cutting 900 positions

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Franciscan Alliance announced Wednesday plans to lay off 275 employees at 11 hospitals and health facilities in Indiana. The company cited changes in "hospital economics" as the reason for the reduction, which comprises about 1.4 percent of Franciscan Alliance's workforce of 20,000.

The company cites "substantive changes in the field, including reduced reimbursements, new payer models, healthcare reform laws and shifts from inpatient to outpatient care."

An additional 650 full-time "equivalent" positions will be eliminated by cutbacks to assigned hours, retirement, attrition and closing open positions.

Franciscan Alliance says it has to cut its costs of care delivery over the next three years by 15-20% ($375,000,000-$500,000,000) to remain viable.

Those being laid off will be notified Wednesday. 

Hospitals include: Franciscan St. Anthony Health-Crown Point; Franciscan St. Anthony Health-Michigan City.; Franciscan St. Elizabeth Health-Crawfordsville; Franciscan St. Elizabeth Health- Lafayette East; Franciscan St. Elizabeth Health-Lafayette Central; Franciscan St. Francis Health-Carmel; Franciscan St. Francis Health- Indianapolis; Franciscan St. Francis Health-Mooresville; Franciscan St. James Health-Chicago Heights, Ill.; Franciscan St. James Health-Olympia Fields, Ill.; Franciscan St. Margaret Health-Hammond; Franciscan St. Margaret Health-Dyer; and Franciscan Healthcare-Munster.

The remaining 19,000 employees will see cutbacks in benefits in 2014. These cutbacks include the elimination of the 1.5% employer match to the 403b retirement savings program, elimination of the PTO buy-back program, higher employee contributions for healthcare insurance, no salary increases for management, and a new defined benefit/defined contribution pension for all co-workers not vested by 1/1/2014 in the defined benefit pension plan.

In September, St. Vincent announced hundreds of layoffs.