LAFAYETTE, Ind. (WLFI) - Franciscan Alliance is cutting nearly 300 positions at hospitals and health care facilities across Indiana. It's mostly being blamed on the Affordable Care Act.
A total of 275 employees at the Franciscan Alliance will be laid off from its 11 hospitals and facilities in Indiana. Locally, 39 layoffs will be at the Lafayette and Crawfordsville hospitals and facilities that make up Franciscan St. Elizabeth Health.
"This is everything from administrative support to nursing hours to pharmacy information technology support services. This is a little bit of everything," said Terry Wilson, President and CEO of Franciscan St. Elizabeth Health.
The Alliance is also eliminating 650 full-time positions. Wilson said 87 of those full-time positions will be in Lafayette or Crawfordsville.
"Retirements that aren't replaced, open positions that are eliminated instead of being filled, people's hours being changed and so forth will reduce a larger number of full-time equivalence across the health system," said Wilson.
Remaining employees will see a cut-back in benefits next year and have to pay more for healthcare insurance. Wilson said managers and administrators, including himself, will not receive salary increases. Franciscan Alliance states the reduction is a response to the shift in hospital economics. Wilson said a part of that is because of the Affordable Care Act, known by many as Obamacare.
"That will lead to decreased utilization of hospitals and health services, pressure on us to reduce expenses, lower reimbursement for the care that we do provide, across the board," explained Wilson.
He explained all those factors force the Franciscan Alliance to reduce expenses because it will be paid less for the care it provides.
The Franciscan Alliance must cut its cost of care delivery over the next three years by 15 to 20 percent, or $375 million to $500 million, to remain viable.
Wilson said at this point, there are no plans for further staff reductions.
More and more attention is being paid to drone technology after Amazon recently announced plans to one day use drones to deliver your orders.
Gov. Mike Pence said his administration is still working to assess the damage left behind from last month's storms.
Purdue University students created toys and activities with a purpose for perhaps the youngest clients they ever have to work with.