The University of Michigan Health System has announced a hiring freeze for non-patient care jobs in its hospitals and health centers unit.
UMHS has also asked certain non-patient care departments to identify ways to reduce expenses in day-to-day operations and to continue redesigning administrative and clinical care functions for better efficiency.
Health system officials stressed that this would not be an across-the-board cut or freeze. It affects mainly administrative areas in the hospitals and health centers unit of the health system.
The hiring freeze specifically includes areas such as human resources, communications, information technology and finance. Hiring is slated to continue for nurses, pharmacists, physician assistants and other patient caregivers to help meet an increasing demand for care.
A UMHS representative said layoffs in non-patient care units could be involved after individual departments determine how to achieve cost-cutting goals. Exact figures on how much the health system needs to cut were not immediately available.
Still, UMHS leaders say the health system remains in excellent financial health. They say the targeted changes in non-patient care areas will help UMHS adjust to "new realities" in the regional and national healthcare market, including changes in the insurance mix of the patient population that is seeking care at UMHS facilities.
The move comes as UMHS seeks to maintain a positive margin on its operating budget to allow continued investment in building projects, physical space renovations and other efforts.
A UMHS representative said patient volume at health system facilities has not declined and that more patients than ever are seeking care at U-M facilities.