Hospital damaged by Ike to lay off 3,800 workers

AUSTIN, Texas (AP) — The University of Texas Medical Branch in Galveston, a teaching hospital severely damaged by Hurricane Ike, will lay off about 3,800 workers — nearly a third of its work force — because it is running out of money.

The University of Texas Board of Regents said in a news release that the Galveston hospital would have no money to operate in about three months, at its current spending rate.

Ike caused nearly $710 million in losses to the hospital when it struck the Texas coast in September and officials have said insurance covered only about $100 million of that.

Some of UTMB's 85 buildings were inundated by up to 8 feet of water. The hospital's kitchen, blood bank and radiology department were virtually destroyed.

The University of Texas system doesn't have the money to cover the hospital's needs and Federal Emergency Management Agency funds cannot be used for operating expenses, or wages and benefits of staff, officials say.