JEFFERSON, La. -- Fifty employees who were in managerial, administrative and clerical positions were laid off Wednesday at East Jefferson General Hospital.

Hospital officials said all the positions were outside of direct patient care, and there are no plans to lay off more people.

East Jefferson's president said these cuts were necessary because of diminishing funds coming into the hospital.

'There are a multitude of issues that we're looking at, and in addition to what other hospitals are dealing with from Medicare and Medicaid cuts; also service block grant money is gone through the end of this year. And with a lot of different initiatives, it felt like we also had to reduce some of our salary costs and made this difficult decision today,' said Dr. Mark Peters, CEO and president of East Jefferson General Hospital.

Peters said the breakdown in negotiations with Blue Cross Blue Shield insurance company was not the cause of these layoffs.

Starting Monday, BCBS patients will still be able to go to EJGH, but will be treated as 'out of network.'

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