Memorial Health System said Tuesday it will cut “several hundred” jobs due to current national and statewide economic trends negatively affecting the healthcare industry.
In a statement, the system says the cuts will include 20 percent of leadership positions and will impact workers at sites across the area. It represents 5 percent of the system’s total health and benefit costs.
The restructuring will be focused primarily on leadership, administrative and support positions, the statement said.
Memorial Health operates hospitals in Springfield, Decatur, Lincoln, Jacksonville and Taylorville. It also runs several clinics and various sites that specialize in health services.
“This is a difficult decision that was made after careful analysis and implementation of other cost-saving measures. Memorial Health is not immune to national trends, such rising cost of supplies and equipment, high cost of labor and shifting trends in payer reimbursements,” said Ed Curtis, Memorial Health president and CEO.
“We are committed to continuing to provide the highest quality of care for the communities we serve, and this action, while painful, enables us to focus on our core mission,” he added.
The system said departing employees will receive a severance package, health insurance stipend and support resources. Some may be offered the opportunity to transfer in the organization.
