SHREVEPORT, LA (KSLA) - Willis-Knighton Health System is downsizing its work force.
Fifty-five employees are being let go immediately, spokeswoman Marilyn Joiner says in a statement released Wednesday evening.
Another 177 jobs will be eliminated over time through retirement and attrition, she adds.
The second-largest employer in Caddo Parish blames the cost of Louisiana's Medicaid program.
"This difficult decision was unavoidable because of the rapid expansion by the state of Medicaid coverage without adequate state funding to support that expansion," Joiner's statement says.
"This has caused problems for many hospitals. And for Willis-Knighton, one of the largest providers of services to Medicaid patients in the state, it has resulted in an approximately 40 percent increase in unfunded costs from last year."
In 2016, Willis-Knighton Health System had more than 6,700 employees.