In this case, even the Health IT workers are not safe from job cuts with a newly announced agreement with IBM to handle what was done in house. Outside the IBM contract, 160 more workers were already notified, which was a cut back to save money. 

In this related story, Kaiser is also using a number of temporary doctors to fill in, which costs less than an employee, but they are not alone in this effort. 

Medical migrants - “locum tenens” Healthcare on Temporary Assignment

In the 4th quarter, the Kaiser Foundation lost 794 million last year, related to today’s current economy.  Add in a little balance billing activity and all the legal expenses that go along with it and things get tough.  I wonder how much hospitals and other health agencies spend a year with battles of such? 

The article said some employees could apply with IBM, but no mention of which area of IBM will be assuming the contract and if the division is located in the US.  BD 

Kaiser Permanente will eliminate 860 information technology jobs over the next six months, following a $500 million strategic agreement with IBM Corp. and related changes announced Monday.

“Only one or two” — if any — jobs will be eliminated in the Sacramento region, which does not have a Kaiser data center, said Phil Fasano, Kaiser’s chief information officer.

Kaiser and IBM (NYSE: IBM) signed a seven-year agreement March 13 to work together to improve Kaiser’s information technology capabilities. The deal focuses on Kaiser data centers that manage company computers and data backups to ensure they are reliable and ready for use, Fasano said.

In a separate but related move, Kaiser will eliminate 160 additional positions at more than 30 locations across its eight regions as part of a cost-saving effort to realign its information technology functions. Most of these employees were notified Monday.

Kaiser to cut 860 IT positions - Sacramento Business Journal:

Related Reading:

Kaiser Foundation loses $794 million in 2008 – Investments and the Economy slated for the downturn

Kaiser Permanente will donate $5 million to Grady Memorial Hospital - more desperate hospitals
Kaiser Permanente Has Most Hospitals in Nation With Inpatient Electronic Health Record
Kaiser Permanente And Veterans Affairs Preview Electronic Health Record Interoperability
Kaiser launches kiosk project in Southern California
Kaiser and Stanford get $3.89M to study heart disease with linked medical records – California
Eight Southern California hospitals sue Kaiser

Kaiser finds some low tech solutions along with high tech..

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