Covenant Makes Second Round Of Cutbacks - KCBD NewsChannel 11 Lubbock

1/13/03

Covenant Makes Second Round Of Cutbacks

On top of letting go a total of 148 people from their jobs, Covenant Health System has also eliminated 82 positions. First round of layoffs were in the early part of December, where 77 people lost their jobs.

Covenant spokesman, Eddie Owens says Covenant made the cutbacks because they underestimated their revenues by $30 million. Owens also says covenant isn't receiving their share of medicare reimbursements.

But the cutbacks will still continue. Covenant administrators are still looking for ways to save money. "The two other measures we've put into place in addition to layoffs are a hiring freeze and the elimination of positions through attrition. When people leave organizations for whatever reason, we evaluate to see if they can be eliminated," says Owens.

Owens said they don't know if there are any more layoffs ahead. Covenant is part of the Saint Joseph Health Systems and at least one of those hospitals we know about is in California.

Owens says that hospital in California is downsizing as well and making cutbacks. Here at home, Covenant is making the cutbacks merely to get it's expenses back in line and expects that Covenant will continue to eliminate positions until June.

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