Memorial Hermann Hospital To Cut 350 Additional Jobs

HOUSTON, TX — It amounts to only about 2 percent of its workforce of 25,000, but the move by Memorial Hermann Health System, Houston's largest employer, reverberated loudly. The hospital announced on Tuesday that it would terminate 350 people, the second time this year that cuts to its workforce have been made.

"This is an unprecedented time in healthcare," the company said in a statement. "The past year has ushered in a tremendous amount of change in the industry across the nation, and Houston is no exception. We continue to face an uncertain healthcare environment with escalating costs and declining reimbursements. In addition, we are impacted by a softened local economy."

The move comes eight days after the sudden resignation of the system's CEO, Dr. Benjamin Chu, who stepped down on June 19. Chuck Stokes, Memorial Hermann's executive vice president and COO, was installed as interim president and CEO.

The cuts would come from all departments and section of the system, but would not affect direct patient care, according to the statement.

A call for comment to Memorial Hermann was not immediately returned.

— Image: flickr/Ed Uthman