Austin, TX – The University of Texas Medical Branch in Galveston, still reeling two months after Hurricane Ike, is laying off about 3,800 people.
UT System regents yesterday announced they were forced to make the job cuts because the teaching hospital is running out of money.
UTMB's current rate of spending, including wages and benefits for faculty and staff who have not returned to work, exceeds revenues by almost $40 million per month.
Dr. Kenneth Shine, interim chancellor of the UT system, expected most of the jobs cut would be from the hospital.
Despite the layoffs -- officials have vowed to keep UTMB open.
Ike hit the Galveston area on Sept. 13.
The storm caused nearly $710 million in losses to UTMB. Officials have said that only about $100 million of the damage is covered by insurance.