MultiCare announced July 12 due to cuts in Medicare and Medicaid from the state the health care company will be laying off 350 employees.

According to MultiCare spokeswoman Marce Edwards, no physicians will be part of the layoffs, but all other staff positions will be part of the cuts.

Edwards said the cuts “will not affect the construction of the emergency department” that is currently underway in Covington. Construction on the project began in June and the facility opening is planned for the spring of 2012. After the emergency department MultiCare is planning to build a 58-bed hospital with an opening in 2014 or 2015.

MultiCare has 9,400 employees in four hospitals and numerous clinics throughout the Puget Sound region, including clinics in Covington, Maple Valley, Kent and Auburn.

The Tacoma-based nonprofit health organization has been operating for 130 years.

According to Edwards, cuts from the Legislature in Medicare and Medicaid programs for the biennial budget added up to a $37.5 million loss for MultiCare. About $10 million in cuts will occur in the first year of the two-year budget.

About half of the patients seen at MultiCare use Medicare and Medicaid according to a release from the health care provider.

The release noted the first five months of this year MultiCare has paid nearly $15 million more than in 2011 in charity care for those who cannot pay.

Edwards said MultiCare is asking for anyone interested to volunteer for the layoff. A severance package is being offered.

Reach Dennis Box at dbox@covingtonreporter.com or 425-432-1209 ext. 5050.

To comment on this story go to www.covingtonreporter.com.