Layoffs, an emerging reality.

Permanent reduction of the work force in a 247-bed tertiary-care hospital in Rhode Island is described. All hospital departments were directed to reduce their salary and wage budgets by a given amount. Each department submitted recommendations for reducing the budget; these were subject to approval of the hospital administration. The pharmacy staff was reduced from 24.6 full-time equivalents (FTEs) to 23.2 FTEs. Termination of employees was a last resort; affected employees were chosen carefully and were given a thorough explanation of the reasons for their termination.