The University of Texas Medical Branch will begin notifying 3,000 workers on Tuesday that they will be laid off because of damage caused by Hurricane Ike. The goal is to staunch losses of almost $40 million a month since the hurricane flooded the school’s buildings. Officials say the measure is needed because the University of Texas Medical Branch is losing more than $40 million a month, mostly from salaries.

The University of Texas System Board of Regents authorized the elimination of up to 3,800 full-time jobs. UTMB officials said classified employees will receive 60 days notice with full salary and benefits. Administrative and professional employees will receive at least 60 days notice with full salary and benefits. Tenured and tenure-track faculty will receive notice with full salary and benefits through Aug. 31, the end of the fiscal year, officials said.

The hospital will also remove at least 350 of its 550 hospital beds. Currently, a limited number of inmates are going to the facility for clinic visits.

A financial analysis showed that if they didn’t lay off employees, they would run out of money in about three months and the UT System would not have the resources needed to cover the deficit.

The hurricane caused nearly $710 million in losses to the hospital and officials have said insurance covered only about $100 million. The main hospital’s pharmacy, blood bank, radiological department and kitchens were destroyed during and after the deadliest natural disaster in U.S. history. The hospital, which was the university’s main source of income, is no longer earning money.