Walnut Creek, Calif.-based John Muir Health is asking staff members to accept 212 voluntary severance packages, according to a San Francisco Business Times report.
If not enough employees accept the severance packages voluntarily, the system could resort to layoffs, according to the report. Employees have until the middle of October to apply for the packages, and all benefit-eligible employees were offered the opportunity to apply for severance. However, employees in difficult to fill positions, as well as those that directly affect patient care quality, are less likely to be considered, according to the report.
The voluntary layoffs are being offered "as an alternative to the blanket, across-the-board layoffs," the system's CEO, Carl Knight, said in a memo to employees, according to the San Francisco Business Times.
The system is attempting to trim $20 million from its labor budget this year and another $32 million next year. The cutbacks are due to elements of healthcare reform and the start of the health insurance exchanges, according to the report.
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