University of Mississippi Medical Center lays off 112 employees

The infamous term “bad economy” became all too real for the University of Mississippi Medical Center in Jackson.  

Earlier this month, 112 UMMC employees were laid off from work due to a downturn in the economy. James Keeton, vice chancellor of affairs, predicts the loss of UMMC’s employees will save the medical center $12 million annually, according to The Clarion-Ledger. UMMC’s finances were reported to have been in the red last year, which prompted the sudden reduction in jobs. 

“It is imperative that we align our costs with our revenues,” Keeton said in a news release. “We have no other option.”

Keeton said the medical center layoffs will not affect patient care.

“The employees were laid off generally due to the current economic conditions and the challenge our medical center has to provide care to a very large population of uninsured patients,” said Tom Fortner, chief public affairs officer at UMMC.

Not only do those uninsured patients lose their jobs and often their insurance, but also they put off elective procedures that would generate revenue for the hospital.

Last year, Keeton said the hospital provided $120 million in “charity care” for the many uninsured, $20 million more than UMMC’s $100 million budget. 

Most of the eliminated jobs were nursing positions, health care technicians and support staff and administration.

However, Fortner believes the cut positions will come back as the economy improves.

“All of the (jobs) lost were in our clinical enterprise, as opposed to our educational programs or our research programs,” he said. 

Keeton said he does not expect more layoffs in the future and expects most of those laid off to be able to find another job.

“We will continue to look at our financial situation to maintain our stability and deliver what we have to to the state of Mississippi,” he said in a release.