Cincinnati Children's Hospital Medical Center plans to reduce costs by at least $250 million over the next five years, according to the Cincinnati Business Courier.
The hospital will begin cutting costs in fiscal year 2017, which begin July 1. The goal is to slash spending by $50 million annually through FY 2021.
As part of the spending reductions, Cincinnati Children's will shrink its workforce. The hospital hopes to avoid layoffs by not replacing some employees who retire and reassigning workers to fill in gaps.
"In the short term, we will do all we can to avoid forced reduction," hospital spokesman Terry Loftus told the Cincinnati Business Courier. "We are not planning any across-the-board reductions and will continue to maintain staffing levels necessary to achieve our vision to be the leader in improving child health."
The hospital will also attempt to shift unnecessary emergency room visits to urgent care centers to cut costs.
"We are looking to create an even more efficient operating model to deliver care but also looking to reduce the amount of resources we need to grow," Mr. Loftus told the Cincinnati Business Courier.
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