Minneapolis-based Allina Hospitals and Clinics is laying off workers throughout its system.
Allina spokesman David Kanahan says as many as 350 positions are being eliminated.
"They are really across the board, each part of Allina -- whether it's a hospital or a clinic, each organization is being asked to look at ways they can participate in this," said Kanahan. "We are trying to make these reductions as far away from the bedside, if you will, as possible. We certainly don't anticipate any diminishment in our ability to provide exceptional care for our patients."
Kanahan says the layoffs are necessary because Allina's amount of uncompensated care is rising, because of state budget cuts and because the stock market decline has hurt the organization's portfolio.
Kanahan says Allina wants to reduce its workforce by 1 percent to 1.5 percent. Allina employs 23,000 people at its 11 hospitals and more than 60 clinics in Minnesota.
He says the layoff notices began going out this week. Kanahan says the company may add employees in a year and a half, as it follows through on plans for new health care initiatives.