Hurricane-damaged hospital plans to lay off 3,800 employees
Emergency Management Alert, November 18, 2008
The University of Texas Medical Branch in Galveston announced plans to lay off 3,800 employees because of the damage sustained from Hurricane Ike in September, according to the Associated Press.
The hospital is cutting nearly one-third of its workforce because the hurricane caused nearly $710 million in damages to the hospital. Officials have said that insurance will cover only $100 million of the expenses.
The University of Texas Board of Regents has said that the hospital would have no money to operate in three months if they continued on their current spending rate. The employees being let go have not been identified yet, but they will remain on the payroll through January.
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