BIRMINGHAM, Alabama -- UAB Medicine is working with a consultant as it conducts a comprehensive review to reduce expenses in the light of changes in the healthcare industry.

Despite rumors of impending layoffs, there is no timetable for any decisions as a result of the review, UAB Medicine COO Reid Jones said. Officials are working with Navigant Consulting, the same firm UAB worked with on a similar initiative in 2009.

This also comes after employees were informed in June that there would be no raises in January and layoffs were not off the table.

What's the immediate effect? As he stated in May, Jones said that "the review of our overall staffing levels includes 400 open positions. It is unlikely all of those will be filled."

There are 13,000 full time and 3,300 part time employees at UAB Medicine, which includes the state's largest hospital, UAB Hospital.

Health care industries are being squeezed by various factors nationwide, including less education funding, flat grant funding from the National Institutes of Health and more regulations to reduce waste. Hospitals are also being paid by the federal government in different ways as a result of the Affordable Care Act.

Like many hospital systems, UAB faces shrinking Medicare money and low Medicaid reimbursements. Those government programs account for more than 50 percent of revenues at hospitals, according to the Alabama Hospital Association.

Jones said UAB Medicine's review is no different than strategies implemented at other academic medical centers, such as Vanderbilt, Cleveland Clinic and Massachusetts General Hospital.

"UAB has had a track record of good financial performance, but operational changes are necessary to adapt to the changing landscape," Jones said. "UAB Medicine is conducting a comprehensive review of all entities within the organization to increase alignment, optimize efficiency, and emphasize quality outcomes and the patient and family experience."

Included in the review will be expense reduction, growth strategies and ways to increase revenue, Jones said.

"Once our review is complete, we will determine the appropriate supplies, services, contracts and workforce to deliver the highest standard of care, and we will make thoughtful decisions that allow UAB to remain a strong and vibrant resource for Alabama and beyond," he said.