Magee-Womens cuts $9 million. (Magee-Womens Hospital)

Specialty hospitals scrambling to keep up amid changing market

OAKLAND - Magee-Womens Hospital plans to cut about $9 million from its budget to better compete in an industry where only the lean will survive - and where specialty hospitals are under particularly heavy pressure.

The 348-bed hospital plans to eliminate about 5 percent of its annual budget, during the fiscal year starting July 1, according to Dan Lebish, the hospital's chief financial officer.

About $6 million will be cut by eliminating salary and benefit expenses, although the hospital hopes to "minimize the number of layoffs" through work redesign programs and attrition, he said.

"We are looking at significant cost reductions over the next several years," Mr. Lebish said, adding that Magee has cut $3 million in costs during the current fiscal …