UMC to lay off 60 workers

University Medical Center plans to lay off as many as 60 employees because of budget deficits and declining patient volume, it was announced late Friday.

"We don't expect any impact" to patient services, said Brian Brannman, the Clark County-run hospital's chief operating officer. "The inpatient workload and outpatient workload has slacked off, and we're basically aligning our staff."

UMC faced a deficit of more than $100 million in next year's budget. The hospital has been holding positions vacant in anticipation, and has renegotiated contracts and reduced nonpatient costs to try to close the gap.

In all, 210 positions are going to be eliminated. Of those, 81 are vacant, and many of the people in the remaining 129 slots will be able to seek other positions or replace someone with less seniority.

The moves are expected to save about $11 million.

"Between people cascading into other vacant positions and some vacancies they can compete for, our net number (of layoffs) will be less than 60, and it could be closer to 40 who are without a job, period," Brannman said.

Activity at the hospital has declined about 17 percent, which is about 1999 levels, he said. Health care providers are experiencing these declines across the valley as people lose insurance and struggle with affording co-pays.

Notifications about the eliminated positions are scheduled to begin Monday.

Commissioner Chris Giun-
chigliani said she was briefed Thursday about the pending layoffs.

The hospital has worked with the Service Employees International Union Local 1107 on how to minimize cuts in staffing, she said.

Union officials could not be reached Friday evening.

UMC's lack of clientele is largely a result of private hospitals building too many rooms in recent years, she said. Now there aren't enough patients to fill all of the beds.

Commissioner Steve Sisolak said the layoffs are unfortunate but not surprising, given the county's budget crunch. The county, he said, must make a hard choice to offset the shortfall: laying off workers or reducing compensation.

"I hate to say it, but this is nowhere near the end of it, either for UMC or the county," Sisolak said.

UMC's finances have been a drain on Clark County's coffers, a situation exacerbated by a recession that has cut deeply into the tax revenues that fund public services.

In April, the county released a report estimating it needed to lay off 530 people or cut wages by 14 percent to balance the county's budget, which includes UMC. County leaders and public employee unions have to hash out how to meet the shortfall by the time the budget is due June 1.

Review-Journal reporter Scott Wyland contributed to this report. Contact reporter Alan Choate at achoate@reviewjournal.com or 702-229-6435.