Brookdale University Hospital and Medical Center in Brooklyn, N.Y., laid off 240 doctors, nurses and other workers on Monday.
Hospital officials attributed the layoffs to the nation's bad economy, as well as rising drug, energy and malpractice costs.
"The general economic downturn has not spared the community served by Brookdale Hospital," said Ole W. Pedersen, a hospital spokesman.
Pedersen said the layoffs affect union and nonunion workers, physicians and some managers. He said the hospital, which has nearly 4,000 employees covering 530 hospital beds, a nursing home and clinics, expects to be able to continue to operate.
Brookdale officials also complained that the hospital had been hurt in payment disputes with insurance and managed care companies. Hospital officials say insurers have a history of often denying payment for necessary medical treatment, leaving the hospital to absorb the costs.