Moody Chisholm, the new CEO of UT Health East Texas, speaks at a press conference unveiling the new UT Health East Texas logo on March 1, 2018 in Tyler, Texas. (Erin Mansfield/Tyler Morning Telegraph) 

The largest health care system in the region announced on Thursday that about 400 people would be impacted by layoffs meant to move the entity toward financial stability.

“Affected individuals will be provided with severance, outplacement support, assistance and resources based upon current policies and years of service,” UT Health East Texas said in a statement.

“They will also be encouraged to apply for open positions within the UT Health East Texas system or other facilities within our parent company,” Ardent Health Services, the statement read.

“The vast majority of affected individuals are nonclinical,” the statement said. “However, some contract nursing staff will be impacted as we move toward a staffing model that relies on permanent nurses.”

Moody Chisholm, the president and CEO of UT Health East Texas, said in the statement that the decision was not made lightly, and that the system is committed to stabilizing and growing jobs over time.

“We deeply regret the personal impact of these changes,” Chisholm said. “As we move forward, we will manage our work effectively so that similar reductions are only part of our past, not our future.”

UT Health East Texas is the new entity formed on March 1 when Ardent Health Services of Tennessee and UT Health Northeast acquired the assets of the former East Texas Medical Center.

The new UT Health East Texas system includes 10 hospitals, more than 50 physician practices, 13 rehabilitation facilities, two free-standing emergency rooms and home health services in 41 counties, among other assets.

Shortly before the acquisition closed, UT Health Northeast offered voluntary separation packages to about 450 employees. At the time, hospital officials said they expected just 10 to 15 percent of those employees to accept the buyouts.

On Thursday, UT Health East Texas said the long-term plan is to move some clinical services from the former UT Health Northeast campus on Highway 271—now called UT Health North Campus—down to the former East Texas Medical Center campus near South Beckham Avenue—now called UT Health Tyler.

“Some caregivers will provide their exceptional service in a different clinical setting or location,” the statement said. “Over time, inpatient services will move from the north campus to the Tyler campus in an effort to improve access for patients and better align (the needs of the sickest patients) with system resources.”

“The north campus will maintain a full spectrum of services to support emergency care, pulmonary, oncology, gastroenterology, minor surgical procedures, and behavioral care, as well as continuing clinical research and education,” the statement said.

Kevin Eltife, a member of the UT board of regents, which signed off on the acquisition that finished March 1, said the financial situation at UT Health Northeast and East Texas Medical Center likely would have led to job losses either way. 

“I hate to see any layoffs in our community,” Eltife said. “However, I felt like there were probably going to be layoffs from both institutions that probably would have been worse had this transaction not taken place.”  

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