Chesterfield, Mo.-based Mercy, one of the largest Catholic healthcare system in the U.S., plans to eliminate as many as 350 positions next week, according to a St. Louis Post-Dispatch report.
The layoffs largely target leadership roles and will hit a number of Mercy hospitals in Missouri, Kansas, Oklahoma and Arkansas, as well as outreach ministries in Louisiana, Mississippi and Texas.
News of the layoffs comes as Mercy faces cuts to reimbursements.
"Mercy faces increasing challenges to our reimbursement structure as we adjust to reductions mandated by the [Patient Protection and] Affordable Care Act and other budget cuts, as well as the lack of Medicaid expansion in most of our states," Mercy officials said in a statement, according to the report. "In light of all of these factors, Mercy is in the process of simplifying our organizational structure and realigning our workforce in order to gain efficiencies and reduce costs."
Those affected by the layoffs are expected to be notified next week.