Type
Internal restructuring
Country
Hungary
Region
Alfod es Eszak; Eszak-Alfold; Hajdu-Bihar
Location of affected unit(s)
Debrecen
Sector
Health / Social Work
Human Health Services And Activities
Human Health Activities
86.1 - Hospital activities

479 jobs
Number of planned job losses
Job loss
Announcement Date
9 January 2007
Employment effect (start)
12 March 2007
Foreseen end date

Description

Mass redundancy of 280 employees is planned at the Kenézy Gyula hospital in the Eastern Hungarian city of Debrecen. The hospital currently employs 2,300 people and it has 1,600 beds. The institution provides services for 1.3 million outpatients and some 54,000 inpatients yearly. The planned dismissals are due to economic adjustments made in July 2006 that resulted in the hospital receiving 130 million HUF less per month in financial support. As wages make up two thirds of the hospital's expenses, the hospital management expects a saving of 110 million HUF a month as a result of the reduction of staff. The operating body, the local government of the Hajdú-Bihar county, has received details about the restructuring plans that will be discussed at its meeting on 1 February. If the local government's assembly supports the plans, then employees will receive notice on 12 March. The mass redundancy is likely to affect 67 doctors, 135 physical workers, 74 medical staff and 4 other employees with higher education degrees. The majority of those facing dismissal are employees close to, or over retirement age; those who have some income from other sources; and employees without adequate qualification for the area of their activity. Further dismissals may be expected in the near future as a consequence of the government's radical reform of the health care system.

In May 2007, another round of mass redundancies was carried out at the hospital as a consequence of the reduction in the number of beds. The lay-offs affected 199 public employees, approximately 10% of the remaining workforce after the previous downsizing. Redundant employees included 29 doctors, 4 employees with higher qualifications, 47 healthcare workers, 77 healthcare blue-collar employees, 27 other physical workers, and 15 admin employees. Other employees were able to keep their jobs as a result of them switching to part-time employment. The downsizing, however, did not result in a change in the organisational structure of the hospital.


Sources

  • 31 May 2007: Magyar Nemzet
  • 9 January 2007: Népszabadság
  • 8 January 2007: Magyar Rádió online
  • 9 January 2007: Népszava

Citation

Eurofound (2007), Kenézy Gyula kórház, Internal restructuring in Hungary, factsheet number 64713, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/64713.