by
Joan Trombetti, Writer | November 19, 2008
Hurricane Ike made
landfall in Galveston
Sept. 13, 2008
In the wake of Hurricane Ike, the Texas health care system has been forced to lay off thousands of employees.
Losing nearly $40 million per month in the wake of September's Hurricane Ike, the University of Texas Medical Branch at Galveston was directed to lay off the equivalent of 3,800 full-time employees.
While UTMB "is diligently and effectively restoring and continuing the significant educational and research programs of the institution in a financially responsible manner," the university's Board of Regents said it did not have resources to cover the current rate of expenditures, including the continuation of wages and benefits for faculty and staff who have not returned to work.
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Announcing the decision to employees, UTMB President David Callender said, "Although the decision to proceed with a reduction in force is necessary given the financial challenges brought on by Hurricane Ike, everyone involved is deeply saddened by the impact this will have on people who have served UTMB well and whose lives have been irrevocably changed."
