Med School Lays-Off 3,800 After Ike Damages Hospital

AUSTIN, Texas

A Galveston, Texas-based teaching hospital is anticipating a lay-off of nearly 3,800 workers after the hospital was severely damaged by Hurricane Ike. The University of Texas Medical Branch will lose nearly one-third of its work force.

With nearly $710 million damage, and at the hospital’s current spending rate, it will only be able to operate for the next three months. The hospital’s kitchen, blood bank and radiology department were virtually destroyed in the hurricane.

The University of Texas (UT) system is unable to offer the money needed to cover the hospital’s expenses. Federal Emergency Management Agency funds cannot be used for operating expenses, or wages and benefits of staff.

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