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Analysis

Intermountain Healthcare to Cut 250 Admin Positions to Lower Care Costs for Patients

By John Commins  
   October 14, 2020

No direct patient care positions will be eliminated. The job cuts represent 0.6% of the health system's 41,000 employees.

Intermountain Healthcare announced Tuesday that it will trim 250 administrative positions from its 41,000-member work force in three states to lower overhead and reduce patients' medical bills.

"Intermountain is implementing these changes and some internal reorganization to help keep healthcare more affordable now and in the future," the Salt Lake City-based health system said in a media release. "Reducing overhead costs and improving efficiencies with administrative and business functions allows the system to preserve patient care positions."

When contacted, Intermountain officials declined to specify how much money the job cuts were projected to save, or how much of those overhead reductions were expected to reduce patients' costs. The 250 job cuts represent 0.6% of Intermountain's 41,000-member workforce in Utah, Idaho, and Nevada.

To get the 250 voluntary buyouts, Intermountain is offering voluntary buyouts for 750 employees in its "centralized business functions," ages 55 or older with 10 years or more at the health system. The buyouts will include additional pay and health benefits depending on length of service. Employees will have two weeks to choose whether to accept the buyout.

In addition to the buyouts, Intermountain is replacing only open positions that are critical for care delivery. There are now 50 open administrative positions that will not be filled.

"If the combination of voluntary separation and ongoing attrition does not reach the goal of reducing 250 business positions, Intermountain will use involuntary reductions," Intermountain said.

“Intermountain is implementing these changes and some internal reorganization to help keep healthcare more affordable now and in the future.”

John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.


KEY TAKEAWAYS

Intermountain officials declined to specify how much money the job cuts were projected to save, or how much of those overhead reductions were expected to reduce patients' costs.

The 250 job cuts represent 0.6% of Intermountain's 41,000-member workforce in Utah, Idaho, and Nevada.

To get the 250 voluntary buyouts, Intermountain is offering voluntary buyouts for 750 employees in its "centralized business functions."

If not enough employees take the buyout, Intermountain said it "will use involuntary reductions."


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