Meriter Hospital said it's laying off about 50 employees.
In a statement Tuesday, Meriter Health Systems said it will see a significant drop in Medicare reimbursements beginning in January and the layoffs are a result of a plan that realigns positions in preparation for the cuts in Medicare reimbursement.
Meriter confirmed that 140 positions are being eliminated, but through attrition and reassignments, it only expects approximately 50 employees to lose their jobs.
Of Meriter's 3,500 employees, fewer than 4 percent were directly affected, according to the statement. Meriter said this change impacted all levels in the organization.
Meriter said it's doing all it can to help affected employees by matching employees from eliminated positions with open positions. For those who can't find a position in the new structure, Meriter said it's providing career assistance and continuing their pay and benefits through the remainder of the year.
Meriter employees were informed of the cuts earlier Tuesday.
Meriter Health Systems laid off 58 employees two years ago, also blaming a drop in federal reimbursements at that time.