LOUISVILLE, Ky. (WDRB) -- KentuckyOne Health, the statewide health system based in Louisville, is undertaking another round of layoffs, citing “challenges brought by the continuing evolution of health care reform and reimbursement structures.”

KentuckyOne, a unit of Denver-based Catholic Health Initiatives, said it’s cutting 250 jobs, though some of the cuts represent employees moving to University of Louisville Hospital in advance of KentuckyOne turning management of the hospital back to U of L on July 1.

“KentuckyOne Health is taking the difficult action of reducing employee positions, primarily in corporate service departments,” the company said a statement Tuesday. “…This decision was taken to improve operational efficiency, reduce overhead cost and allow us to remain focused on our core mission of delivering quality patient care.”

KentuckyOne spokeswoman Barbara Mackovic said corporate services employees are “non-clinical teams supporting the entire organization.”

About 150 of the cuts are layoffs, according to the statement, while the other 100 represent employees taking early retirement buyouts or moving to University Hospital.

KentuckyOne – formed by the 2012 merger of Jewish Hospital & St. Mary’s Healthcare in Louisville and the St. Joseph Health System in Lexington – has about 12,000 employees across the state.

The system, which generates about $2 billion in annual revenue, was profitable in the three-month period ended Dec. 31, but its profit margin dropped to 2.8 percent, from 5.2 percent a year earlier, according to Catholic Health Initiatives’ latest financial report.

KentuckyOne manages most of the operations of University Hospital and U of L’s James Graham Brown Cancer Center under a joint operating agreement with the university.

But after less than four years, university officials accused KentuckyOne of reneging on its obligations, and both sides agreed to return the hospital and cancer center to U of L starting July 1.

CHI expects to recognize a $272 million loss once KentuckyOne gives the hospital and cancer center back to U of L, according to the financial report.

Reach reporter Chris Otts at 502-585-0822, cotts@wdrb.com, on Twitter or on Facebook. Copyright 2017 WDRB News. All rights reserved.