M.D. Anderson to Eliminate 1,000 Jobs

HOUSTON (Houston Business Journal) – The University of Texas M.D. Anderson Cancer Center announced Jan. 5 that it plans to eliminate roughly 1,000 jobs, or 5 percent of its workforce, through layoffs and retirement. The cuts are expected to save the institution around $120 million a year, or $10 million a month, M.D. Anderson officials said at a press conference.

Between 800 and 900 jobs will be cut, officials said, and the institution plans to eliminate the remaining 100-200 expected job cuts through attrition and retirement. Of the total 1,000 jobs being eliminated, roughly 120 employees in managerial, leadership or VP roles will be affected, officials said. No clinical faculty will be affected by the cuts. All of the affected jobs are in Houston.

“We primarily focused on those areas where we could make staff reductions, re-engineer administrative support, and not impact quality of patient care,” officials said at the conference.

M.D. Anderson has a workforce of roughly 20,000 employees and is one of the largest employers in Houston. The institution’s financial woes started when it rolled out a new electronic health records system in March. The nonprofit cancer hospital anticipated the system would create an initial loss in productivity as the users — physicians and mid-level clinicians — started using the system. To combat that, the institution bolstered its cash reserves and staffed additional contractors and part-time personnel to create a smoother transition, M.D. Anderson CFO Dan Fontaine told the Houston Business Journal in December.


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