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Oct 9, 2008 10:21 am US/Central
UT System Says UTMB Layoffs Likely
GALVESTON (AP) ―
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University of Texas Medical Branch-Galveston
A day after elected officials claimed they had helped avert a planned layoff of thousands of employees at the University of Texas Medical Branch, the interim chancellor of the UT System said a "significant" portion of workers will lose their jobs.
The layoffs will come as a direct result of damage inflicted by Hurricane Ike, which cost the academic medical center in Galveston about $710 million in building damage, ruined equipment, revenue losses, cleanup and evacuation. Insurance will cover about $100 million, said Kenneth Shine, the interim chancellor and executive vice chancellor for health affairs, in a story Thursday in the Austin American-Statesman.
"We recognize there have to be significant reductions in force on the island," Shine said Wednesday. "It's a very challenging situation."
According to Shine, some of the 85 buildings on campus took on as much as 8 feet of water, and storm damage essentially destroyed the hospital's kitchen, blood bank and radiology department.
In addition, the center's main revenue source, a 500-bed hospital at the campus, is expected to return as just a 200-bed hospital for now. With the hospital and other revenue generators out of commission or at reduced capacity, the medical branch will likely operate at a deficit beginning as soon as next month, Shine said.
Shine acknowledged the efforts of employees in getting the branch operational again at a time when many have lost their homes. But layoffs are essential for the long-term health of the medical branch, he said.
"We want to support as many people as we can for as long as we can," UT Medical Branch President David Callender said. "I've been worried every day that I might have to announce large layoffs. This is an extremely dynamic situation. Every day, things change."
On Tuesday, lawmakers said they learned of planned layoffs from Galveston Mayor Lyda Thomas and then pressured the University of Texas Board of Regents to find money to save jobs.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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