Health & Science

MD Anderson Cancer Center Announces Major Layoffs

The hospital system suffered operating losses of more than $110 million in its last quarter.

Photo of news conference
MD Anderson physician-in-chief Tom Buchholz, CFO Dan Fontaine and President Ronald DePinho (from left) announce the layoffs during a news conference Thursday, Jan. 5, 2017.

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.

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Florian Martin

Florian Martin

Business Reporter

Florian Martin is currently the News 88.7 business reporter. Florian’s stories can frequently be heard on other public radio stations throughout Texas and on NPR nationwide. Some of them have earned him awards from Texas AP Broadcasters, the Houston Press Club, National Association of Real Estate Editors, and Public Radio...

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