Temple University Health System officials have announced plans to eliminate 500 positions.

The health system plans to eliminate the jobs of 350 employees and cut 150 vacant positions from the rolls by June 30.

Some of the cuts are slated to happen immediately. The cuts represent six percent of the health system’s total workforce of 8,000.

Included in the layoffs are those affected by program closures that will occur over time at the Maternal Child Health Program at Jeanes Hospital, the Adult Day Care Program at Northeastern Hospital and the School of Nursing at TUH-Episcopal Campus.

According to health system officials, the cuts are a part of the system’s comprehensive financial remediation plan that includes expense-reduction initiatives and revenue-enhancement measures. Staff members were notified of the cuts Friday morning.

The staff cuts – which also include management – are due to financial pressures on the health system including continued cuts to reimbursements, increased costs for mandatory reporting and non-funded mandates and escalating costs. The health system is striving to save more than $35 million by the end of the fiscal year.

Health system officials say the challenge of serving as the city’s leading “safety net” provider has contributed to its financial loss. During fiscal year 2006, TUHS provided $117.5 million in charity and under-reimbursed care.

“Clearly, this is a very challenging time for all of us at Temple University Health System,” Health System Chairman and CEO Joseph W. “Chip” Marshall III said in a statement. “In the face of growing financial challenges, we needed to consider all necessary expense reduction options.

“For those valued employees whose positions have been eliminated, we are committed to assisting them through the transition process,” Marshall said. “Every effort will be made to redeploy affected employees into appropriate jobs throughout the Health System and they will be given priority consideration for rehire when positions become available.”

“We have great pride in our past and great expectations for our future,” Marshall added. “We will continue to meet our patient-care and educational support missions. And we will do so from a more robust financial platform.”

According to TUHS Spokeswoman Rebecca Harmon, they will be hosting a job fair March 8 in conjunction with other health systems for the affected employees.

“It’s an unfortunate turn of events at Temple, but it’s really unnecessary,” says Bill Cruice, executive director of the Pennsylvania Association of Staff Nurses and Allied Professionals.

Cruice noted that the TUHS cutbacks come at a time when some of its high-ranking officials are receiving hefty salaries and it is preparing to move its headquarters and administrative offices into a four-story renovated building at the old Budd Co. property in North Philadelphia. According to published reports, TUHS had signed a 15-year, $90 million lease with the Preferred Real Estate Investments Inc. for the space.

In addition to the position and program eliminations, TUHS has already implemented cost saving measures including the elimination of discretionary spending, restrictions on the use of agency/temporary labor and overtime hours and the adoption of a more stringent hiring-review process.

TUHS is an academic health network that consists of five healthcare-provider facilities, Temple Transport Team; and Temple Physicians, Inc. a network of community-based physician practices.