Madison-based University of Wisconsin Health set an $80 million financial improvement target to be achieved during the next 18 months.
UW Health CEO Alan Kaplan, MD, said the system will cut jobs to reduce costs. Reduction of agency labor, overtime management and leaving open positions unfilled will be the system's first steps to cut expenses. Dr. Kaplan added when jobs are cut, UW Health will help employees move to any open positions within the system.
The system also plans to trim expenses related to care delivery, supply costs, pharmaceuticals and utilities, among other business costs.
Dr. Kaplan cited an increasing number of patients covered by Medicare and Medicaid, lower commercial payer rates, and "extraordinary" growth in medication and supplies costs as reasons for the cuts.
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