700 Accept Early Retirements at Cleveland Clinic

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

CLEVELAND, Ohio — The Cleveland Clinic has announced that 700 of its employees have agreed to early retirements.

According to a statement released by the Cleveland Clinic Wednesday night, the workers accepted an enhanced voluntary early retirement program. The plan is to “back fill” nearly half of the positions where it’s clinically necessary, according to the statement.

Several hundred open positions were also closed.

Last fall, the clinic announced plans to trim $330 million from its budget in 2014. At the time, officials said the cuts were in response to health care reform laws.

At that time they also said after they calculate the savings from cuts and early retirements, they can determine how many, if any, people must be laid off.

The Cleveland Clinic’s entire statement on the retirements is as follows:

“In our ongoing effort to restructure our health system to provide more affordable healthcare services for our patients, today, we shared with our employees that nearly 700 people accepted the enhanced voluntary early retirement program we offered. Our plan is to back fill nearly half of those where it is clinically necessary. As a result of the hard work of our leaders who identified ways to reassign responsibilities, we also closed several hundred open positions which allowed us to keep our reduction in force to a minimum. These are always difficult decisions and we regret the loss of any jobs. We will continue to evaluate our services and the way we work moving forward, just as healthcare systems across the country will need to do. At the same time, we will continue to hire for positions that are critical and we will continue to grow to ensure our future is strong, to protect jobs and to provide the best care to our patients.”

Stick with Fox 8 and Fox8.com for more on this developing story.

For extended coverage on this story, click here.

21 comments

  • george johnston

    The unions are killing Clinic health care. No wonder why health costs have gone up. This is yet another effect of not supporting SB5.

      • Current employee

        I am a current employee and they don’t have a union but instead of cutting staff stop building all over the place there’s many more things that’s was cut as well

  • Anonymous

    2 things. 1 clinic employees are not public employees so sb5 has nothing to do with them. 2. Clinic employees are not unionized.

  • anonymous

    What is not mentioned in this announcement that CCF has put out is that they laid off many people Clinic-wide this morning. Very sad to see 5 of my colleagues let go from my building most which have been there for 7-13 years.

  • jh

    to regain control of the pay grade. Once the new pay grade is set it will be hard for new employees to make what the older employees are making.

  • Anonymous

    What is The CEO giving up???OR the board, that is where millions of dollars are going? Most CEO’s take a sacrifical cut or some such act to show their support to their organization??
    And why are none of the other healthcare organizations laying people off? Hmmm…..

  • Anonymous

    The reason healthcare reform had to take place is because of the crazy exorbitant charges these facilities charge. Rather than take the loss of income, and become part of the reform where doctors and hospital administrators are not ridiculously overpaid ,they are redistributing the losses to what i am sure they view as the “lesser” employees. That is why the other healthcare organizations are not laying off, because the clinic is being greedy and doesn’t want to see their bottom line effected.
    Would be an interesting statistic to see what they pay in management, advertising and I agree Board members and CEO’s.
    Care will be affected, do not be fooled. I was at one of their health centers in Beachwood to check in for an appointment and the reception area is unmanned had to check in all the way down the hall at an unrelated department and sit in an empty waiting area. I am too old for this business. We need more private practice doctors. Where i know the secretary,nurses and doctor. Sounds Cliche, but i miss that.

  • Mike

    As a financial planner, I find it absolutely ridiculous that these people were forced into early retirement after spending a lot of money and education for this type of career. Good luck to all these individuals!

  • rics

    Due to ACA (affordable health care) some major insurane companies were forced to drop the Clinic as an “in network” health provider. This is the only cause for their downsizing.

  • rics

    Anonymous, You are mistaken. The Clinic is not the greedy party here. Again the Government health care act is the reason for this action. They are no longer considered “in network” Understand that this is one of many negative outcomes to Government run healthcare. Get used to it, it will only get worse

  • just me

    Funny how I comment about how the Clinic had so many cut backs, making people retire early yet they gave all the coders raises….this is fact! Yet it hasn’t been posted here yet.

  • Alan

    The biggest problem with our current healthcare system is that today’s administrators understand what everyone knew in the late 1840’s: “There’s GOLD in them thar ills!”

  • Annabel

    This is only the beginning of another economic downfall. CCF is one of biggest employers, yet they are going to lay off people through out the system, bc of “repositioning.” No one wanted to take the retirement either bc they couldn’t afford to or they relized the package offered was not worth it. CCF will now be putting more people out of work which means more people will be leaving Ohio to find work, not buying homes, not getting “affordable health care”, and not living the American dream that we all hope for. In time other companies will be doing the same thing whether its healthcare or other. I’m sure UH will soon follow suite. My husband’s company is starting “repositioning” within their organization first by overtime and next positions. This problem goes beyond the CCF.

  • Spinnr

    CCF is just behind the times. Other regional systems felt the crunch from the recession years sooner, and the Clinic just kept cruising on. While Metro and UH have been through their reorganizations and are now recovering, the Clinic is finally feeling the hurt and realizing they can’t keep operating in the old fashioned way…a little like GM.

  • Amy

    Can anyone tell me what concessions the CEO is making? The Clinic published his book, are the proceeds benefiting the foundation in any way? Let us ask about his personal chef and assistant at the hospital, is this necessary? I would also like to ask about the personal jet that has been used for non business related flights.

    All of this makes me sick. I am sure this type of behavior is not limited to CCF.

    Again, the middle class, dedicated employees who have spent many years dedicating themselves to an organization they thought they could be proud of pay the price. Is anyone else out there tired of being fleeced?

    Unfortunately, my race, gender and zip code won’t allow me to benefit from services I have been paying into for years. Our future here is so bright, I am blinders apparently.

  • Amy

    Dr. Cosgrove also mentioned the backfilling of positions as a result of the 698 early retirements. He failed to mention, however, that several people were laid off on Wednesday and their positions now posted to be filled by new employees hired in at a lower wage. This is all about salary readjustments and it isn’t because they were paying all that much to begin with. He should be nominated for an Oscar as his acting has convinced many. He will be notorious for tearing down what used to be a respectable institution.

Comments are closed.