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SYRACUSE, N.Y. -- The Syracuse area's largest operator of nursing homes has laid off roughly 100 employees.

Loretto says the positions were gradually eliminated starting in January and were mostly management-level employees and support staff. The company says the layoffs did not impact employees who are directly related to the delivery of patient care.

The decision to cut so many positions comes as Loretto is operating under increasingly limited funding from the state and federal level.

"Deterioration of the Medicare and Medicaid funding is really what drove that process and Loretto just recognized that we couldn't just wait around and hope for things to get better. We took action and now the organization is financially very stable, very secure and we're moving forward again,” said Loretto Senior Vice President Steve Volza.

Loretto is hoping to move forward with a plan to build a series of cottages in Cicero designed for a more intimate home health care option for about 150 patients. The company has received a grant for part of the project and plans to seek financing for the rest soon.