SwedishAmerican Health makes cuts in Rockford

ROCKFORD — SwedishAmerican Health System plans to cut jobs and outsource services as it works to trim $9.5 million from its budget.

The cuts involve 125 jobs, including 49 layoffs and the loss of 76 vacant positions. The Rockford-based health system employs nearly 3,200 people and serves 12 counties in northern Illinois and southern Wisconsin.

System CEO Bill Gorski blames the cuts on several issues, including rising charity care, Medicaid and Medicare reimbursement cuts and delayed state aid payments.

Officials say the system also plans to outsource its durable medical equipment business, gift shops and valet parking.

The health system operates SwedishAmerican Hospital in Rockford, SwedishAmerican Medical Center in Belvidere, a network of clinics and a home health care agency.