Dive Brief:
- North Carolina-based Novant Health is planning to cut 400 employees from its payroll.
- The layoffs are part of a sytemwide reorganization that began in the fall of 2014.
- Several media outlets report that before the layoffs, Novant will recruit for 1,000 open positions. Once current employees have been moved into those position, around 400 people will lose their jobs.
Dive Insight:
The company says there are several reasons why employees are being dropped from the payroll, including North Carolina's failure to expand Medicaid, more uninsured people going to emergency rooms and a Senate budget that will reduce the annual sales tax refund for NC nonprofits.
"The evaluation was a necessary step to continue to serve Novant Health communities in the future despite declining reimbursements and many other challenges facing the healthcare industry today," the company said in a statement. "Teams across the organization have worked together to standardize processes which will improve patient quality and safety outcomes, patient satisfaction and achieve financial savings to ensure Novant Health's long-term financial stability."