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Miller School of Medicine at University of Miami Plans to Lay Off 800 Workers

May 9, 2012

The University of Miami's Miller School of Medicine intends to lay off up to 800 employees at the end of the July.

The positions are concentrated in unfunded research and administration, including support staff, information technology, human resources and marketing.

Pascal Goldschmidt, CEO of the University of Miami Health System, cited declining reimbursement as well as a reduction in funding from the National Institutes of Health as prompting the action.

The health system filed a Worker Adjustment and Retraining Notification with the state of Florida, disclosing its intention to cut 800 positions on July 31. Layoffs of more than 500 employees must be disclosed at least 60 days in advance.

Goldschmidt noted during a news conference that the total number will likely be less than 800, but he could not say what the final tally would be.

He added that the cuts will not affect employees in clinical positions. "Patient care is entirely untouched and, if anything, augmented," he said.

The health system began notifying affected employees on May 8.

The layoffs follow a similarly large round of cuts at Jackson Health System, also in Miami, which laid off about 920 employees from April 27 to May 1. The University of Miami receives payments from Jackson Health System for services its physicians provide there, but the funds have been decreasing as the county-run provider faces its own financial challenges.

"This was really the last resort," Goldschmidt said. "But it was absolutely necessary."

The University of Miami Health System has more than 8,200 employees and more than 1,500 physicians, according to its website.

Beth Kutscher writes for Modern Healthcare, a sister publication of Workforce Management. Comment below or email editors@workforce.com.

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