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Lawmakers Promise Money To Save 4,000 UTMB Jobs

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Oct 8, 2008 9:22 am US/Central

Lawmakers Promise Money To Save 4,000 UTMB Jobs

GALVESTON (AP) ― The University of Texas Medical Branch reversed course Tuesday on a planned layoff of 4,000 employees when lawmakers promised money to help the academic medical center deal with Hurricane Ike-related losses.

Ike caused nearly $710 million in losses to UTMB, which planned to lay off one-third of its 12,000-employee work force, Galveston Mayor Lyda Ann Thomas said at a news conference Tuesday. About $100 million of that is covered by insurance, UTMB President David Callender said.

Lawmakers said they learned of the planned layoffs from Thomas and then pressured the University of Texas Board of Regents to find money to save jobs.

After the news conference, Thomas and state Rep. Craig Eiland said they were disappointed UTMB was going to lay off workers so soon after the hurricane when many employees are still reeling from the storm.

"If you take 4,000 people out of the work force and just throw them to the wind, it's certainly going to affect the economy," Thomas said.

The medical center continues to lose money because the hospital, its main source of revenue, is barely operating since Hurricane Ike, Callender said.

Future layoffs are possible, Callender said.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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