WEST DES MOINES, IA (WKOW) — UnityPoint Health announced Wednesday it will eliminate 207 information technology positions and transition some IT and revenue cycle functions to third-party vendors later this year, according to a press release from the health system.
The West Des Moines-based system said the changes are necessary to strengthen long-term financial sustainability amid rising labor, supply and drug costs, reduced reimbursements and increased demand for complex care services.
“Like many health systems across the country, we are navigating a period of sustained financial pressure that requires us to make difficult but necessary decisions,” said Scott Kizer, president and CEO of UnityPoint Health, in the release.
The organization said it selected IT and revenue cycle functions for outsourcing to minimize impact on direct patient care while leveraging technology advancements. UnityPoint Health is still determining how many revenue cycle positions will be affected.
Impacted employees will receive severance packages, benefits continuation and career transition support, according to the announcement.
UnityPoint Health operates more than 400 physician clinics and 35 hospitals across the Midwest, including in Wisconsin.
The health system emphasized that savings from the changes will be reinvested into patient care rather than distributed to shareholders or investors.