NUMC Announces Major Layoffs

Due to a projected $50 million budget gap, 175 employees at will be issued layoff notices Wednesday.

Arthur Gianelli, president and CEO of Nassau Health Care Corporation (NHCC), also known as NuHealth, announced Monday that due to a $25 million employee pension cost increase, $15 million reductions in Medicaid Disproportionate Share hospital reimbursements and a $10 million increase in costs for health insurance, pharmaceuticals and supplies, he has made the decision to initiate a "workforce reduction" of 175 employees.

"These costs force us, after much agonizing, to initiate a targeted workforce reduction of 175 employees, with an additional 77 who had accepted an incentive in late October 2011, with a commitment to do everything in our power to mitigate the impact of these cuts and protect our mission,” Gianelli said in a statement.

Gianelli noted that the $25 million increase in pension costs was simply not sustainable at current staffing levels with a $553 million 2012 budget at the NUMC, which is Long Island's only public hospital.

The 77 retirees received a maximum payout of $30,000 each, based on salary and seniority. However, the laid-off employees will receive no severance, Gianelli told Newsday.

According to the story in Newsday, the layoffs affect 157 hospital employees — including 15 doctors — 14 workers at Nassau Health Care Corporation's (NHCC) family health centers and four staffers from Patterson Extended Care facility.

Gianelli assured that patient care would still operate at the highest of levels.

"Of the 175 employees who unfortunately will lose their jobs, only a very minimal amount provide direct patient care or housekeeping support, helping to minimize any impact to patients," he said in a press release.

According to Newsday:

In addition to layoffs, NUMC plans to cut $10 million in contract costs; eliminate $6 million in overtime and negotiate $4 million in givebacks from doctors.