Covenant Health in Lubbock, Texas, plans to lay off 49 employees as part of a workforce reduction strategy, according to a report by KCBD.
Affected employees can vie for open positions at Covenant Health with the help of the system, or they will receive severance packages and outplacement services, according to the report.
The layoffs stem from reduced reimbursements due to healthcare reform and the sequester's cuts to Medicare, according to the report.
"Covenant Health is financially stable, but the changes we've experienced thus far and will continue to undergo are the direct result of reduced reimbursements and our efforts to make affordable healthcare services available in our community going forward," Richard Parks, Covenant's executive vice president and CEO, told KCBD in a statement.
More Articles on Hospital Layoffs:
Mission Health to Lay Off Dozens, Cut Budget
Arnot Health to Eliminate 83 Positions at St. Joseph's Hospital
Uniontown Hospital's Department Closures to Affect 70 Employees