Union Hospital Inc. in Terre Haute will cut 150 positions by the end of the year. In a letter to staffers, executives blame the “extremely difficult” decision on economic pressures. The hospital says it needs to reduce costs by $200 million before 2020. The following is text of a letter to hospital employees, regarding the layoffs.

Dear Union Health System Team Members:

Union Health System's mission is to serve our patients with compassionate healthcare of the highest quality. It is important to continue to deliver high quality care and services honoring our commitment to the community. While some of these changes are exciting and innovative, others are extremely difficult.

We face numerous challenges due to changes in the healthcare environment and its impact on Union Health System, which include a shift to more outpatient services and declining reimbursement. Initiatives like our Accountable Care Organization, population health management, online patient portals, along with same-day and after-hours access to care, are all positively impacting the health of our community.

We believe it is important to be transparent in decisions being made within the organization. Health systems throughout Indiana and across the nation have been forced to reduce costs to address the rapidly changing healthcare environment. Union Health System is not immune to these economic pressures.

As many of you know, through conversations in leadership, department meetings and rounding, we have been focusing our efforts on ways to reduce our cost of care and improve efficiencies in our operations. By 2020, as a system, we need to realize an estimated $200 million reduction to align ourselves and remain a strong organization.

It is with great regret that we must reduce approximately 150 positions across the System before the end of the year. We are very much a family, and our associates are incredibly valuable to our organization. This difficult decision was not reached easily and comes only after careful consideration and thorough analysis.

While these decisions are difficult, the change is necessary to continue to provide high quality healthcare for the communities we serve. We will continue to provide excellent patient care and remain focused on improving the patient experience. Ultimately, we must all be fiscally responsible and good stewards of the System's resources.

For more than a century, Union Hospital and our affiliated physician partners have served our community with compassionate, high quality care. With your help and continued support, the actions we are taking now will allow us to become an even stronger organization.


Pat Board, Union Health System CEO

Steve Holman, Union Hospital President & CEO

Ed Carne, UAP Clinic CEO

Source: Union Health System, Union Hospital Inc.

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