Billings (Mont.) Clinic will lay off workers as part of a restructuring plan to address financial and operational headwinds in today's healthcare environment, the organization confirmed.
The layoffs are expected to affect approximately 27 or fewer positions.
"The cost of contract labor and other rising costs have been an immense challenge for the entire industry, and Billings Clinic hasn't been immune to that," the organization said in a statement shared with Becker's. "To deliver on its mission to care for all of the patients and communities it serves, Billings Clinic must continue to find ways to address rising costs.
"Reducing contract labor and other labor cost reductions are part of a comprehensive financial recovery effort."
Over the next 30 days, Billings Clinic expects to conduct focused restructuring, including the layoffs.
Billings Clinic said it is also recruiting for more than 200 positions and is encouraging workers affected by the layoffs to explore open positions within the organization. Each affected employee will be offered 30 days of paid administrative leave while they consider other opportunities at Billings Clinic.
"The goal is to minimize the number of positions that will be eliminated and the number of potential cuts has been decreasing daily," the organization said, adding that the maximum number of positions eliminated would be less than one-half of 1 percent of the workforce. As of June 22, five total positions have been eliminated in the information technology and compliance departments.
Billings Clinic said employees who don't pursue other opportunities within the organization will also receive health insurance benefits and a severance package based on years of service.
The recent layoffs come after Billings Clinic announced in April that it would reduce pay for physicians and senior executives, in addition to various other cost-cutting measures, as part of a new financial sustainability plan.