Alegent Health says a troubled economy is largely to blame for a decision to cut jobs.

The company is reducing its management team by 40 positions or 10%. It is also eliminating seven vice president positions.

Alegent says it is in the process of adopting new productivity standards that will result in a cut of 245 full-time positions by March 3, 2009. The company says the cuts will have little effect on positions involving direct patient care.

Also, those in a senior leadership position at Alegent Health are taking a voluntary 10% reduction in compensation. The company says it will continue to find ways to reduce discretionary expenses.

Alegent Health Chief Executive Officer Wayne Sensor says rising costs and a growing number of uninsured patients have led to an increased need for charity care.

Alegent Health says it will continue operating with a staff of more than 9,000 with a payroll of about $375-million. Alegent says it is the largest not-for-profit faith-based healthcare system in Nebraska and southwestern Iowa.