MD Anderson to eliminate 1,000 jobs

Dive Brief:

  • MD Anderson Cancer Center will eliminate about 1,000 jobs, about 5% of its workforce, Houston Business Journal reported.
  • Regarding the cuts, 800-900 will be eliminated through layoffs while the remainder will be cut via retirement.
  • Out of the total number of workforce reductions, all of which will be in Houston area, about 120 will come from managerial roles, HBJ added.


Dive Insight:

President Dr. Ronald A. DePinho announced the news on Thursday during a press conference, ABC13 reported, adding, an internal email from DePinho was sent to employees the same morning, stating: 

Dear MD Anderson community, for months, we've been working to improve our financial performance. Despite great effort from everyone, we must take additional measures to protect our mission to end cancer. Today I excepted the recommendation from the Shared Governance Committee, and I wanted you to hear this news directly from me.

As The Washington Times noted, the system went through some tough times toward the later half of last year when it reported a loss of $110 million, attributed to higher insurance deductibles and payers not wanting to cover expensive care services. Houston Business Journal reported that it's financial woes began last March when it went live on its new EHR system.

MD Anderson has about 20,000 employees. "I can promise you M.D. Anderson will be here today, tomorrow and long into the future," DePinho was quoted by Houston Business Journal.

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Filed Under: Hospital Administration
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