Utah’s Intermountain Healthcare will outsource 98 information technology employees to DXC Technology, a Virginia-based IT services vendor, as part of the health system’s ongoing workforce restructuring.

Effective June 3, Intermountain’s 98 IT staff members—who provide computer support, Internet access and system administration—will become employees of DXC.

According to Intermountain, no Utah jobs are being lost, and none of the employees impacted by the move are clinicians. “All affected employees will receive a job offer from DXC with a continuation of employment for at least a year,” states the announcement.

Joe Fournier, Intermountain’s chief people officer, said in a written statement that employees who accept the job offer will transfer to DXC and that many will continue to work on Intermountain projects, while some will do work for DXC’s other customers. He added that any employee not wanting to transfer to DXC will receive placement services to help them find other jobs.

“These employees are all exceptional and will continue to provide important services to our communities,” said Fournier. “It is very important to us that they are well taken care of.”

In addition, the healthcare organization announced that another 260 staffer members—who work in cybersecurity, data center, on-site support, and telehealth—will not be affected by the change and will remain employed by Intermountain.

Intermountain Healthcare

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“We look forward to welcoming the Intermountain employees to DXC Technology,” said Richard Adamonis, DXC’s vice president of corporate communications and global marketing.

Created by the merger of CSC and the enterprise services business of Hewlett Packard Enterprise, DXC has 150,000 employees in more than 70 countries and serves nearly 6,000 private and public sector clients. Intermountain said that it has been working with DXC on multiple projects since 2012.

“As a healthcare provider that is not in the business of developing IT solutions, Intermountain has found it makes sense to partner with highly efficient and effective companies such as DXC to perform certain IT tasks,” said Marc Probst, Intermountain’s chief information officer, in a written statement. “The partnership with DXC offers cost-effective IT solutions within the healthcare industry, as well as access to an extensive network with expertise in technology management.”

The outsourcing of Intermountain IT staff is part of a larger workforce restructuring effort that will also include transferring 2,300 billing and scheduling employees to Chicago-based revenue cycle management vendor R1 RCM.

In January, R1 announced an expanded 10-year agreement with Intermountain, which has been a customer since 2011. Under the agreement, R1 and Intermountain will create a revenue cycle management (RCM) product development and technology solution center in Salt Lake City.

“Intermountain currently employs a regional focus for RCM operations, like many other health systems across the country; consolidating RCM operations into a single-geography footprint will help reduce costs while optimizing operational efficiency and quality,” states R1’s announcement. “As part of the arrangement, R1 will welcome 2,300 Intermountain Healthcare employees to be part of R1.”

“This is the last new or expanded partnership arrangement—like R1 and DXC—we will consider in the foreseeable future,” added Intermountain’s Fournier.

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