PHILADELPHIA (CBS) — Hahnemann University Hospital is laying off nearly 200 employees Thursday. According to a spokesperson, the hospital is running out of money and could face closure if monthly losses, in excess of $3 million, continue.

Hahnemann employs 2,700 people.

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The 175 cuts will reportedly affect nurses, support staff, and managers.

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“Hahnemann Hospital is the latest example of the ongoing health care crisis that has impacted every hospital in Philadelphia, all of whom struggle to obtain fair compensation for the safety net services they provide. We are proud to serve our community, but the reality is that Hahnemann faces severe financial challenges that threaten its ability to survive. In response, the Hospital has undertaken a comprehensive turnaround plan that requires a wide range of difficult decisions, including the need to reduce the size of our workforce to align to current patient volumes,” the hospital said in a statement.

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The move is expected to save the hospital $18 million a year.