Detroit Medical Center will lay off employees, eliminate open positions and overall reduce its workforce by 1 percent, officials told Crain's Detroit Business.
Here are six things to know about the workforce changes.
1. DMC won't know the exact number of layoffs or labor reductions until employees have been informed of the workforce changes and decide on new positions offered to them. However, if DMC does reduce its workforce by 1 percent, about 125 employees would lose their jobs out of the system's 12,500-person workforce, according to Crain's Detroit Business.
2. Aside from the layoffs, DMC also cut an unspecified number of open positions.
3. Affected employees are being offered the option to apply for positions in other areas, transfer to out-of-state hospitals or facilities owned by Dallas-based Tenet Healthcare Corp., which also owns DMC, and connect with other potential employers.
4. This is not the first time DMC has laid off employees. The medical center, which is owned by Dallas-based Tenet Healthcare Corp., has gone through employee reductions for various reasons over the last few years, the report notes. Last fall, DMC closed its surgery hospital in Madison Heights, Mich., after it sustained flood damage. At the time, about 127 were laid off, although some were able to get other positions at DMC. According to the report, 63 employees were also laid off in September after DMC outsourced its linen services to an out-of-state vendor.
5. DMC officials attribute the latest workforce changes to a need to reduce costs and improve efficiencies. "The DMC continually works to achieve efficiencies across our system," Conrad Mallet Jr., DMC's chief administrative officer, said in a statement, according to the report. "Most recently, this process resulted in operational improvements and the discovery of opportunities to realign some administrative and related functions. By first eliminating various open positions and realigning job functions, we improved efficiencies and minimized the need for workforce reductions."
6. According to the report, it was unclear exactly how much money DMC expects to save with the workforce changes.
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