UTICA, N.Y. (WKTV) - Ten employees at Faxton-St. Luke's Healthcare have been laid off and 27 vacant positions have been eliminated as the medical organization reduces its workforce.

According to the medical center, the 37 positions are supervisory and non-supervisory including non-clinical and clinical personnel. According to a statement, eligible employees were offered a severance package.

"Making reductions in our workforce is always a difficult decision and, like many New York State hospitals that have recently downsized their workforce, we are facing the same financial challenges," stated Scott H. Perra, president/CEO of Faxton St. Luke's Healthcare. "We continue to be targeted by the Federal government for more reductions in payments for patient and resident care and face significant financial challenges in the coming year. Even with the brief two-month delay by Congress to avoid what has been termed the 'fiscal cliff,' we continue to see further reductions to Medicare and Medicaid payments in a number of healthcare services."

The hospital system is comprised of Faxton St. Luke's Healthcare, St. Luke's Home, Visiting Nurse Association of Utica and Oneida County, Senior Network Health and Mohawk Valley Home Care with a workforce of 2,900 employees and an operating budget of $339 million.