Union Hospital Health Group communicates downsizing to workers.

Union Hospital Health Group of Terre Haute, Ind., faces a challenge to reduce spending by $20 million over the next two years through downsizing and cost-cutting measures. Downsizing is prompting gossip and rumors to circulate among its 2,800 current employees and 250 physicians. To combat the rumor mill, the public relations department positions its communication tools and methods to send critical information to its employee base.