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The Mercy hospital system announced Thursday that the company will be cutting jobs.

“We are restructuring this week, reducing targeted positions and moving some co-workers into new roles,” the Chesterfield-based company said in a statement.

The company cited reduced reimbursement for services under Medicare and Medicaid, “which do not fully cover the costs of care.”

Increased expenses for labor and rising costs for drugs and supplies were also referenced as factors.

Mercy has hospitals in the St. Louis area, Springfield and other cities across the state, as well as in Arkansas, Kansas and Oklahoma. A spokesperson said that the impact of Thursday’s announcement is spread out over the states.

The changes are expected to affect less than 1% of the company’s 45,000-member workforce.

“Our hearts and prayers go out to our affected co-workers and their families. They will receive help finding new jobs and a severance package including compensation and benefits based on their position and length of service,” Mercy said in a statement.

The company has been notifying the affected employees over the past two weeks, according to a spokesperson.

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