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UTMB HMO cuts 150 jobs

By

The Daily News

Published July 25, 2001

GALVESTON — Opting to focus on its primary medical and teaching

mission, the University of Texas Medical Branch is stepping back from the

business of managed care.

UTMB HealthCare Systems, a health maintenance organization that is a

subsidiary of the university, will cut its workforce in half.

The move will coincide with the end of its contracts with the

University of Texas system, Texas A & M and the state employee retirement system,

which serves current and retired workers.

The HMO sent notice of 150 layoffs to the Texas Workforce Commission

earlier this month.

Aurora , the HMO’s chief operating officer, said some

employees have left since the layoffs were announced in February and 50 people

would be laid off in August.

The cuts will “considerably narrow” the HMO’s office in Houston,

where the bulk of its operations had been, said . The HMO maintains its

corporate headquarters in Galveston.

The cuts will reduce the workforce to 170 people and would not

extend to the university, she said.

Economics did play a role in the decision, but UTMB leaders were

mainly motivated by a desire to focus on university’s original mission,

said.

“I think UTMB has made a strategic business decision to get out of

the health care business,” said.

UTMB HealthCare Systems will continue to serve as the HMO for the

state’s Children’s Health Insurance Plan and Medicare Select Seniors.

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© 2001 Galveston Newspapers Inc. All rights reserved.

A Southern Newspapers Inc. publication.

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