Deficit forces layoffs, pay cuts at MU Health

COLUMBIA, Mo. -- An estimated $9 million in losses will force University of Missouri Health Care to implement more layoffs, salary cuts and hiring freezes, officials said.

Vice Chancellor for Health Affairs Daniel Winship outlined the plan Thursday in an e-mail to employees. He said the shortfall arose because the state has not yet sent millions of dollars it had promised to the health system.

The number of layoffs and specifics on other cost-saving measures will be made public Feb. 22. State lawmakers appropriated $10 million in federal money to give to MU Health, only to learn the system was ineligible for it. The system also was to receive $7 million in tobacco settlement money but has received only $4 million and has been told it probably will get no more.

Winship said the state has also withheld $2 million from the hospital's regular appropriation.