Nearly 70 people who work in MercyOne Des Moines Medical Center’s patient financial management department will be laid off from their jobs in mid-March, according to a notice posted this week on Iowa’s Worker Adjustment and Retraining Notification, or WARN, website.

The pending layoffs are in reaction to changes in government funding that are expected to reduce Trinity Health’s annual revenue by $1.5 billion, MercyOne said in a statement. Additionally, federal officials are considering other cuts to Medicare and Medicaid, the statement said.

“It is not possible to simply absorb such a significant financial impact without making thoughtful, forward-thinking changes,” the statement from MercyOne said.

Trinity Health, headquartered in Livonia, Mich., is the parent company of MercyOne, which it acquired in 2022. Trinity Health is among the largest not-for-profit Catholic health care systems in the U.S., managing 88 hospitals and numerous other facilities in 25 states including Iowa.

Trinity Health recently announced that it would cut 10.5% of positions in its revenue cycle departments nationwide. The move affects 67 workers at the Des Moines medical center. Workers in the department are responsible for such things as patient registration billing, insurance coding and other related financial aspects of the health care operation.

“While we are confident this is a necessary, though painful action, we also recognize the very real impact on colleagues whose roles are affected by job elimination,” the statement said.  “The move is necessary to ensure the long-term sustainability and future growth.”

“Like other health care providers across the country, we are navigating significant challenges, including low reimbursement that doesn’t cover the cost of care, critical clinical staffing shortages, and the escalating costs of drugs, supplies, equipment and technology,” the statement said. “The rising cost of charity care and caring for underinsured and uninsured patients presents further strain on health care providers.”

MercyOne, in the statement, said that some of the department’s functions will be “transitioned to a partner,” or third-party contractor.

Related, MercyOne will close its family and internal medicine clinic in Ottumwa on Feb. 27, a move that will affect 40 employees. Patients will be contacted about transferring either to a MercyOne clinic in Centerville or elsewhere.