The New York City Health and Hospitals Corporation announced Thursday that it will cut 400 jobs in an effort to save nearly $105 million from its next fiscal year budget.
The cuts are a result of a $66 million reduction to HHC’s Medicaid reimbursement by the state, the rise in uninsured patients, and other factors.
“We can try and ensure that patients who are adversely affected can be linked to alternative care. That, of course, will become more and more difficult as we have to dig deeper and deeper,” said Health and Hospitals Corporation President Alan Aviles.
HHC, which employs around 30,000 people, will lay off 200 of its workers beginning in July.
Another 200 jobs will be lost through attrition. It will also close 20 of its community and hospital-based programs.
Local DC 37, which represents some of the workers, released a statement saying, “If there is one thing that should be obvious in this economic climate it is that layoffs are not a solution but only compound the problems we’re facing. District Council 37 will address this issue aggressively. We are talking to the State to make sure that the federal stimulus moneys are used for the purpose for which they are intended.”
Among the closures are four school-based health programs, three community clinics, and two mental health day treatment programs.
Three other hospital-based programs will also be consolidated with reduced staffing.
The HHC says the cuts only cover a fraction of the problem and could lead to more reductions in the future.