University of Miami Health System layoffs

University of Miami President Donna E. Shalala talks about layoffs at the University of Miami Health System, including the medical school. Shalala spoke to the Miami Herald Tuesday, May 8, 2012.

Chuck Fadely / Miami Herald Staff

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Up to 800 people will lose their jobs under a major restructuring at the University of Miami medical school, President Donna Shalala said Tuesday.

State budget cuts, less research money, lower compensation from insurers and cutbacks in payments by Jackson Health System made the changes necessary, Shalala said during a meeting at the Miami Herald.

Its not a great situation, Shalala said, but at the end of the day, well be a much stronger healthcare system of a much higher quality because we will be able to reinvest in healthcare delivery. ... Weve moved this institution to new heights. The world is changing beneath our feet.

Laid-off workers are being notified this month, Shalala said. A notice UM filed with the state Tuesday announced the university would cut 800 jobs by July 31, but Shalala said the final number is likely to be lower. The cutback is the largest by any employer in the state since the medical schools campus neighbor, Jackson, announced 920 layoffs in February.

The UM reduction amounts to 8 percent of the medical centers 10,000-person workforce. Shalala said no doctors or nurses who provide clinical care would be affected. The cuts announced Tuesday come after 182 temporary workers were laid off in late March.

Most of the UM layoffs are concentrated in research and administration as the university centralizes services to serve the entire enterprise. About 150 people who schedule appointments will lose their jobs in various departments as that service is centralized. About 150 in research administration and 110 researchers will also be let go, according to the letter UM filed with the state.

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UM medical school to lay off up to 800