Citing the economic downturn, Sacramento-based Sutter Health said Monday that it has cut 121 information technology positions in its Rancho Cordova facility.
Officials of the health system said the employees at Sutter's Information Services Department were notified Monday that they were being released immediately, although they will continue to be paid through July 17.
Sutter said it released the affected workers Monday to give them two months to seek new jobs, with all receiving regular pay during that time. After July 17, severance benefits will kick in, based on each employee's years of service and role with the company.
Sutter said the affected workers will receive payment of health coverage premiums for the duration of their severance and access to job- placement services.
"This decision was one of the most difficult I've ever had to make," said Jon Manis, Sutter's chief information officer. "These are dedicated and talented professionals who have provided tremendous value to our organization.
"Unfortunately, these staffing changes are necessary. We have a higher responsibility now more than ever to our patients who pay for health care to be good stewards and to keep our services affordable."
Like other health care organizations, not-for-profit Sutter Health has been hit hard by the recession. Income for 2008 was $186 million, down from $623 million in 2007.
On Monday, Sutter said "a number of the affected positions (in the Rancho Cordova office) support Sutter Health's electronic health record," or EHR for short.
Sutter recently launched its first hospital-based EHR program in Burlingame. It said hospital-based installations will not resume "until sometime after 2009," again because of the economy.
Sutter said it remains committed to implementing a comprehensive EHR system.
Sutter Health and its affiliated hospitals and physician organizations now employ about 1,500 information services staff members throughout Northern California.
Call The Bee's Mark Glover, (916) 321-1184.
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