nyc hospital corporation announces cuts

Last Thursday the NYC Hospitals corporation announced that it was cutting 400 jobs and closing several facilities in an effort to close its budget gap or over $300 million. The "400 jobs" figure came from freezing 200 unfilled positions and laying off an additional 200 workers. The layoffs were expected to affect clerical, physician, nursing, and support staff. Unions affected included New York State Nursing Association, Union 1199, and DC 37, which has thus far been the most vocal in fighting off the layoffs. The facilities HHC anticipates closing include: three school based, one adolescent, and one adult mental health programs, four community clinics, three satellite pharmacies, two HIV case management centers, and a directly observed therapy program for TB. The announced cuts were expected to save about $100 million, but the anticipated shortfall is over $300 million and expected to grow. The City of New York provides about $500 million to fund the HHC, the State about $50million. The President of the HHC has called on the state to use some of it $10 billion in federal stimulus money close the gap.

Interestingly, these cuts come in the context of a capital expansion program for HHC. Among the projects is remodeling and expanding a long-term nursing care facility on the LES. The list, however, is long , and in the context of the current economic climate, it's hard not to second guess the desicion to lay off staff when so many projects are proceeding. However, until we kno what the next round of cuts will look like, it's too soon to judge.