GALVESTON, Texas -- Thousands of University of Texas Medical Branch employees are losing their jobs two months after Hurricane Ike devastated Galveston, KPRC Local 2 reported Wednesday.

Dana Esham is a third-year resident in the pediatrics department. Since the announcement that the hospital will be cutting 3,800 jobs, she's not sure which friends she'll have to tell goodbye.

"Absolutely breaks my heart," said Esham. "I think after the hurricane we knew this was coming, but it's hard. We're like a family there."

The hospital is only operating at 25 percent, yet it's still paying 100 percent of the staff. And according to the Board of Regents, that means the hospital is losing $40 million a month.

The hospital was set to run out of money in three months.

No one from the hospital would go on camera, but a spokesperson sent a statement saying, "The U. T. System does not have resources available to cover the ongoing operating expenses and needs of UTMB."

Mayor Lyda Ann Thomas said this will be a huge economic blow for her city, but more importantly the people of Galveston are losing care.

"We're very disappointed of course," said Thomas. "The history of UTMB is to provide medical care to the poor, and I'm not sure that mission is being recognized today."

Business owner Joe Flores said he is also concerned about the hospital's future.

"Yeah, it is concerning," he said. "What if I have a heart attack? What am I going to do?"

It's now a waiting game to find out who will be losing their jobs and how soon.

In their statement UTMB said, "The Board further directs that steps be taken to mitigate the impact of the reduction in force on affected faculty and staff, including priority hiring of qualified employees for available positions at other U. T. System institutions, assistance in placement of employees with other healthcare institutions and employers, and exploration of opportunities for retirement incentive packages."

Thomas said the city will do everything possible to get those jobs back, but it will be tough in this economy.