Frederick (Md.) Health Hospital eliminated 150 vacant positions and is restructuring about 40 current filled positions, Frederick Health President and CEO Tom Kleinhanzl said in a letter to employees shared with The Frederick News-Post.
Mr. Kleinhanzl told the newspaper the cuts and restructuring are part of a plan to save roughly $4 million from the annual operating budget. The plan also includes renegotiating purchasing agreements for hospital supplies.
About 40 employees who are affected had the option of taking a different position at the hospital or receiving a severance package, Mr. Kleinhanzl said, according to The Frederick News-Post.
He said 17 employees whose jobs were restructured have accepted new positions and nine employees have accepted severance.
Overall, the position reductions represent about 5 percent of the hospital's total workforce of about 3,250, according to The Frederick News-Post.
Mr. Kleinhanzl told the newspaper all affected positions are administrative and will not affect patient services. Positions affected by the restructuring include two vice presidents, one of whom accepted a different role within the organization, he said, according to the newspaper. The other vice president affected is considering options.
Mr. Kleinhanzl told the newspaper other employees affected by the expense reductions include those in back-office functions, such as billing collection.
The hospital eliminated 19 leadership roles, Mr. Kleinhanzl said, according to The Frederick News-Post.
He told the newspaper: "We're doing this to be proactive and ensure that we can continue to do all the important things this county and the community counts on us to do."
Frederick Health has about 4,500 employees across the organization, according to its website.