UW Health to cut jobs, reduce $80M in expenses

A major Madison-area health provider plans to cut jobs and other areas to reduce millions of dollars in expenses, the company said Thursday.

UW Health said it plans to reduce expenses over the next year and a half by focusing on labor efficiencies, costs for supplies, pharmaceuticals, utilities and other business costs.

Spokeswoman Lisa Brunette said the $80 million cut target will include staff cuts, but the company didn’t have an estimate yet on how many jobs will be lost.

UW Health said it’s facing sharply increased costs, which are exceeding a declining revenue growth.

UW Health CEO Dr. Alan Kaplan said in a news release that position reductions will be done in the least disruptive way possible for staff. Kaplan told the Wisconsin State Journal that the cuts could include eliminating at least 225 full-time positions. UW Health has 17,000 employees.

Reducing the use of agency labor, managing overtime and not filling open positions will be among the first steps to reduce costs, according to the release. When positions are eliminated, UW Health will help employees move to other areas of the organization when possible. UW Health said it will continue to recruit in areas where additional staff members are necessary for patient care.

Earlier this month, SSM Health, another major health care provider in Dane County, announced it was cutting one percent of its job force .