Updated: Friday, 19 Dec 2008, 1:28 PM CST
Published : Thursday, 18 Dec 2008, 11:33 AM CST
AUSTIN (KXAN) - A spokesperson for the Austin Regional Clinic said "there's no doubt the economy was a factor" in the closing of one of their clinics and the layoffs of 60 people this week. The layoffs and closing was announced this week after spokesperson Heidi Shalev said the economy forced fewer people to come to the clinic for the past several months.
"And, it's really unfortunate, too, because this is the time of year people should really be focused on their health," Shalev said.
No doctors are being laid off. Layoffs affected managers in the ARC's corporate office, nurses, medical assistants, business office staff, medical records staff and customer service representatives. The layoffs affected 6 percent of the group's non-physician workforce. ARC said closing the Rundberg Square location, one of 21 medical facilities operated by ARC, will help their goals to reduce overhead costs in 2009.
"Austin Regional Clinic is taking proactive steps in response to economic factors that are currently affecting virtually all businesses in the world, including medical organizations," Norman Chenven, MD, Founder and CEO said in a press statement Thursday. "ARC must face this economic reality, requiring us to act and thus preserve the important work we do. The measures we are taking are necessary and prudent, and we will maintain quality and patient access for our community. Closing a clinic and reducing our workforce are both very painful steps for an organization like ours that is dedicated to caring for people."
The six doctors who practice at the Rundberg Square location will be transferred to other clinics: