Chicago-based Presence Health will layoff 250 employees during the next three months and leave another 450 jobs unfilled this year, according to Chicago Tribune.
The news comes just days after Presence reported a $186 million operating loss in 2015.
In addition to layoffs, the health system plans to leave vacant 450 jobs that are expected to become available this year through attrition. The total reduction of 700 positions will save Presence an estimated $50 million by the end of 2016.
In an interview with the Tribune Wednesday, Presence CEO Michael Englehart largely blamed out-dated and inefficient collections practices for the system's deteriorating financial health.
Mr. Englehart said job cuts will be contained to corporate and support areas, rather than healthcare staff, according to the Tribune.
The 700 position reduction represents 3.5 percent of the health system's 20,000-person workforce.
Mr. Englehart has brought in hospital consulting experts to help get the system back on track financially.
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