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UnityPoint Health to lay off 207 IT employees

UnityPoint Health plans to outsource portions of its information technology and billing and payment operations to third-party operators later this year, the nonprofit health care system announced today.

Just over 200 IT positions will be eliminated by the move; it’s not yet known how many employees in billing and payment operations will be affected by the change.

The layoffs and outsourcing are in response to mounting financial pressures from rising labor, supply and drug costs; insurance reimbursement reductions; and growing demand for complex care services.

“Like many health systems across the country, we are navigating a period of sustained financial pressure that requires us to make difficult but necessary decisions,” Scott Kizer, UnityPoint Health’s president and CEO, said in a prepared statement. “Our focus is to ensure we remain strong for the future — so we can continue delivering expert, high-quality care and expand local access for the patients and communities who depend on us.”

UnityPoint Health is transferring information technology operations to Accenture, a global professional services company that specializes in IT consulting, strategy, technology and operations. Accenture, with operations in more than 200 cities and 120 countries, is headquartered in Chicago. It also has an office in Des Moines.

A majority of the 207 IT positions that will be eliminated are in Iowa. The nonprofit also serves communities in Illinois and Wisconsin.

Some affected employees may be able to transition to other jobs within UnityPoint Health or at Accenture, a spokesperson said. The remaining employees will be provided with packages that include severance pay, benefit continuation and career transition support. UnityPoint Health’s transition to Accenture is expected to occur later this year.

Omega Healthcare Management Services, headquartered in Boca Raton, Fla., is the vendor that will be taking over billing and payment operations for UnityPoint Health. On its website, Omega Healthcare describes itself as an “artificial intelligence-driven health care solutions company.”

UnityPoint Health officials opted to move some IT and billing and payment operations to third parties because those functions don’t have a direct impact on patient care, a news release said. The move also is expected to take advantage of advancements in technology and improve users’ experience.

The announcement is similar to one made earlier this year by Trinity Health, the parent company of MercyOne in Des Moines. The nonprofit Catholic health care system announced that it was laying off 67 employees in MercyOne Des Moines Medical Center’s patient financial management department. MercyOne said that some of the department’s functions were being transferred to a third-party contractor. The contractor’s name was not provided.

UnityPoint Health, whose headquarters is in West Des Moines, would not say how much the nonprofit corporation would save by transferring some operations to third parties. In a news release, the organization said that the savings would not benefit shareholders, investors or venture capital firms. The savings will be reinvested into UnityPoint Health “for the betterment of its patients, team members, and communities,” the release said.

UnityPoint Health has over 31,000 employees who work in the organization’s facilities, most of which are located in Iowa. The nonprofit operates over 400 clinics as well as 18 regional hospitals and 17 community network hospitals in Iowa, Illinois and Wisconsin.