Shands HealthCare officials announced today that Shands AGH will relocate its programs and services to Shands at the University of Florida and the cancer hospital that is scheduled to open next fall as a result of "budget cuts and the ongoing economic crisis." The move will be made in one year.
As many as 1,150 employees will lose their jobs, but officials say they hope to place as many of those employees as possible in other parts of the Shands HealthCare system. According to a Shands press release, most of the employees that lose their jobs will be invited to move to Shands at UF as programs and services are transferred there.
As a result of federal and state budget cuts, less reimbursements from government programs and private insurance companies, and declining numbers of patients, officials say Shands AGH lost more than $12 million in 2007. The relocation of the Shands AGH programs is part of an effort to cut $65 million from the Shands HealthCare system budget over the next three years.
When Alachua General Hospital opened in 1928, it was the first community hospital in Gainesville. Later, Shands took over the operation.