KentuckyOne Health has begun cutting staff to make up the $218 million over the next 17 months its chief executive says is needed to make up a budget deficit.KentuckyOne Health falls under Catholic Health Initiatives and was formed in 2012 to include Jewish Hospital and the St. Joseph Health System. In November 2012, University Hospital was added through a joint operating agreement—that was after Gov. Steve Beshear rejected a full merger.The layoffs are expected to run through February. Officials would not say how many jobs would be cut.In a statement, KentuckyOne Health said: Decisions about staff reductions are among the most difficult decisions we make. We are working to support the individuals impacted and to provide them with the resources they need during their transition, including severance based on length of service and other individual factors. These changes are difficult, but necessary to bring our expenses in line with our revenue and reach our goal to become a fully integrated, financially stable health system within the next two years. There has been a fundamental shift in the way health care is organized and delivered. We must change in order to sustain our purpose—to bring wellness, healing and hope to all, including the underserved."I do believe we must adjust what we are spending to the amount of month that we get for taking care of our patients," KentuckyOne chief executive Ruth Brinkley said in a video posted last month and noted by The Courier-Journal.KentuckyOne Health is running a deficit and has a goal of making up $218 million by the end of its 2015 fiscal year. The system is offering severance pay, outplacement services and a few other services, according to a website set up the layoffs.