The MD Anderson Cancer Center is laying off between 800 and 900 of its 20,000 employees – mostly in administrative roles, including executive and manager positions.
No doctors will be let go.
“We’ve primarily focused on those areas where we could make some staff reductions, re-engineer some of the administrative support for the institution and obviously not affect the quality of the patient care and certainly the frontline providers,” Dan Fontaine, MD Anderson’s chief financial officer, said.
The layoffs became necessary because of a continuing budget deficit, he said, in part due to the hospital’s new electronic health record system.
MD Anderson president Ronald DePinho said they accepted fewer patients and hired more staff to implement the system, “so the decreased revenue from the decreased productivity plus the increased expenses add up to the delta that we have to correct.”
He said the hospital’s long-term financial health is strong.
The hope is to achieve some of the staff reductions through voluntary retirements.
It will save MD Anderson $120 million a year.