Dallas-based Tenet Healthcare plans to eliminate 1,300 jobs as part of an enterprisewide cost reduction initiative, and 150 of those job cuts will occur at Detroit Medical Center, three sources briefed on the matter by senior DMC officials told Crain's Detroit Business.
Tenet launched its cost reduction initiative after reporting a net loss from continuing operations of $366 million in the third quarter of 2017, compared to a net loss from operations of $9 million in the third quarter of 2016.
Detroit Medical Center, which operates seven hospitals, confirmed to Crain's that it is reducing its workforce, but declined to provide the exact number of employees affected.
According to Crain's Detroit Business, Detroit Medical Center CFO Victor Jordan was asked to step down earlier this month by CEO Tony Tedeschi, MD. However, health system officials told Crain's Mr. Jordan's exit was a "mutual decision."
One source told Crain's Detroit Medical Center is laying off 15 to 20 ambulatory care department employees at Children's Hospital of Michigan in Detroit due to dwindling patient volumes. Another source said several employees in DMC's quality department have recently been transferred to other duties or laid off.
The 150 layoffs represent less than 2 percent of Detroit Medical Center's 12,000-person workforce, according to the report.
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