OHSU(Oregon Health & Sciences University) will cut 500-1,000 jobs, benefits by June

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Source: Oregon Live.com

Adding to the state's growing unemployment, Oregon Health & Science University said Thursday that deteriorating finances will force it to eliminate up to 1,000 jobs, cut employee benefits and make other program reductions by the end of June.

OHSU cut about 115 jobs earlier this month, and its total planned reductions -- between 500 and 1,000 positions -- will place OHSU alongside Intel and Hynix Semiconductor as the state's biggest job shedders this recession.

The university is one of Portland's largest employers, with about 12,900 employees.

One in eleven Oregonians in the work force is without a job, pushing the jobless rate to 9 percent at the end of December, according to state figures.

OHSU faces across-the-board declines in its funding sources and is trying to carve $30 million to $35million from its budget for the fiscal year ending June30. So far, it has suffered $39 million in investment losses due to the meltdown in financial markets, compared with projected investment income of $33 million -- a $72 million reversal in cash flow that usually subsidizes education and research.

The recession also has significantly reduced its other big source of profits, clinical operations, as the hospital and clinics see fewer patients and more without insurance. Meanwhile, the downturn is casting doubt on state funding for higher education and Medicaid payments, as well as federal research grants and the reimbursement of overhead they bring.

Read more: http://www.oregonlive.com/business/index.ssf/2009/01/ohsu_to_cut_as_many_as_1000_jo.html