Mercy is laying off employees systemwide, according to a statement from the health care provider.
Mercy Springfield Communities spokeswoman Sonya Kullmann provided a statement to Springfield Business Journal. Kullmann said employees within Mercy Springfield Communities are impacted, but she did not disclose how many.
The statement indicates layoffs and the movement of some employees into new roles this week affects less than 1% of Mercy’s 45,000 systemwide employees. As of July 2018, Mercy reported more than 12,700 employees within 50 miles of the Queen City to rank No. 1 on Springfield Business Journal’s list of the area’s largest employers.
“Mercy, along with other health care providers, continues to be challenged by reduced reimbursement for the services we provide, especially from Medicare and Medicaid, which do not fully cover the costs of care,” the statement reads. “At the same time, we are experiencing increased expenses for labor in an increasingly competitive job market, as well as rising costs for drugs and supplies.”
Affected employees will receive severance packages, which include compensation and benefits based on their position and time with the health care system, and assistance locating new jobs, according to the statement.
The layoffs were first reported by KY3.
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