Columbus-based OhioHealth is eliminating 637 jobs, its biggest layoff ever, according to The Columbus Dispatch. The move is part of a plan to engage external partners to provide some services the system currently provides in house.
Over the next three to five months, the system will eliminate those jobs in information technology and revenue cycle management. Of those, 567 are in information technology. It informed workers of the cuts on July 7.
“We are committed to providing a high-level of support to all associates affected by this change,” Colin Yoder, director of media and public relations at OhioHealth, told Becker’s in a statement. “This includes outplacement support, a job fair specifically for those displaced, temporary salary and benefits continuation after their OhioHealth employment ends and upskill training for those in Information Technology.”
OhioHealth said the IT work will be handled by the professional services company Accenture, and AGS Health will handle the revenue cycle business.
The layoffs, according to OhioHealth, are intended to improve patient care and services and position the healthcare system for a future where patients rely more on telemedicine and cellphones to obtain their healthcare.
“This strategy will enable us to secure the skills, technology, expertise and innovation required to deliver a best-in-class, patient-centric, personalized healthcare experience without taking away from investments we are already making at the bedside,” Mr. Yoder said.
The IT workers will remain on payroll until Jan. 3 and will be given the opportunity for training that could make them eligible for other jobs at the company. The other workers will be laid off Nov. 4.
U.S.-based employers announced 32,517 cuts in June 2022, a 58.8 percent increase from 20,476 cuts announced in the same month last year, according to a new job report from Challenger, Gray & Christmas.
June marks the highest month since February 2021, when 34,531 cuts were announced. It is the second time this year that cuts were higher in 2022 than the corresponding month a year earlier.
Healthcare/products manufacturers and providers announced the most job cuts this year with 19,390, which is up 54 percent from the 12,620 announced through June 2021. The automotive industry posted the second-highest cuts with 15,578, a number that is up from the 6,111 cuts in the previous year.
Andrew Challenger, senior vice president of executive search firm Challenger, Gray & Christmas, said the numbers demonstrate increasing economic strain.
“Employers are beginning to respond to financial pressures and slowing demand by cutting costs. While the labor market is still tight, that tightness may begin to ease in the next few months,” Mr. Challenger said.
Locations suffering the highest losses include California with 28,692, New York at 15,952, and Pennsylvania at 9,310.
Several hospitals are trimming their workforces due to financial and operational challenges, and some are offering affected workers new positions.
1. Santa Cruz Valley Hospital in Green Valley, Ariz., closed June 30. The closure resulted in 315 workers losing their jobs. CEO Steve Harris said the decision to close Santa Cruz Valley Regional Hospital was made after it was unable to secure emergency department staffing for the Fourth of July weekend. The hospital issued a Worker Adjustment and Retraining Notification Act notice June 20, which gave the hospital’s 315 workers notice of the mass layoff.
2. Claxton-Hepburn Medical Center in Ogdensburg, N.Y., is cutting approximately 5 percent of its 800-person workforce as it makes changes aimed at improving revenue cycle functions. The hospital said in late June that it is planning to outsource revenue cycle functions and lay off revenue cycle staff.
3. Sturgis (Mich.) Hospital said it is planning to lay off 194 employees in July as it scales back services or closes. The hospital subsequently secured a loan to keep it open through July, according to WTVB.
4. Bristol (Conn.) Health on June 16 eliminated 31 positions, including 10 that were filled and 21 that were vacant. The majority of those laid off were in management.
5. Citing skyrocketing expenses and flat revenue, St. Charles Health System in Bend, Ore., will cut 181 positions, according to a May 18 announcement. The workforce reduction includes laying off 105 caregivers and eliminating 76 vacant positions. The layoffs affect mainly nonclinical workers, including many leadership positions. The four-hospital health system said it took steps to address its financial challenges, but it ended the month of April with a $21.8 million loss.
6. Toledo, Ohio-based ProMedica’s health plan, Paramount, is laying off about 200 employees in July after losing a Medicaid contract. Anthem acquired Paramount’s Medicaid contract, and ProMedica and Anthem have been working to identify open roles for employees affected by the layoffs.
7. Greenwood (Miss.) Leflore Hospital announced in May that it will lay off 30 employees to help offset losses. The layoffs, which include an undisclosed number of physicians, affect less than 4 percent of the hospital’s workforce. Many of the affected employees were notified May 17.
8. Mercy Medical Center in Springfield, Mass., part of Trinity Health of New England, is trimming jobs. The hospital laid off 12 of its 380 unionized nurses, the Massachusetts Nurses Association told Western Mass News in May. Translators and ancillary staff were also affected by the cuts. Trinity Health of New England, which declined to provide the number of workers affected by the layoffs, attributed the cuts to national disruption in the healthcare industry. In addition to the layoffs, Trinity Health of New England is also eliminating some positions that are currently vacant.
Several hospitals are trimming their workforces due to financial and operational challenges, and some are offering affected workers new positions.
1. MetroWest Medical Center in Framingham, Mass., eliminated live interpretation services in April and laid off an undisclosed number of employees, the MetroWest Daily News reported. Hospital leaders said a “minimal number of positions” were eliminated when the hospital ended the services. Workers affected by the layoffs can apply for open positions at the hospital, according to the Daily News.
2. Watsonville (Calif.) Community Hospital is preparing to lay off 658 workers, according to a notice filed with the state and shared with Becker’s Hospital Review. The hospital, which filed for Chapter 11 bankruptcy in December, expects the layoffs to occur between May 16 and May 23. Healthcare group Pajaro Valley Health Care District was approved by a bankruptcy judge to purchase the hospital in February after no other qualified bids were submitted. The group needs to gather at least $20 million by July to purchase the hospital, Santa Cruz Sentinel reported April 4.
3. Memorial Hospital at Gulfport (Miss.)laid off its chief medical officer and vice president of system development in April. Regarding the layoffs, Memorial Hospital at Gulfport CEO Kent Nicaud said the hospital is facing financial challenges, such as increased labor costs, and is aiming to return to an organizational structure it had three or four years ago.
4. Toledo, Ohio-based ProMedica’s health plan, Paramount, is laying off about 200 employees in July after losing a Medicaid contract. Anthem acquired Paramount’s Medicaid contract, and ProMedica and Anthem have been working to identify open roles for employees affected by the layoffs.
5. MarinHealth Medical Centerlaid off 104 revenue cycle and supply chain employees in April after entering into a contract with Optum to provide those services, according to a notice filed with state regulators in February. Greenbrae, Calif.-based MarinHealth said that as a result of the contract with Optum, all non-contractual revenue cycle and supply chain employees were terminated from employment with the hospital on April 9. Optum offered jobs to most workers affected by the layoffs. Employees who accepted an offer began employment with Optum on the first work day following separation from MarinHealth, a spokesperson for the hospital told Becker’s Hospital Review.
6. St. Mary’s Medical Center in West Palm Beach, Fla., laid off 49 employees, including 21 registered nurses, when it stopped providing mental health services in April, according to a notice filed with state regulators.
7. NYC Test & Trace Corps, the city’s initiative for COVID-19 testing and contact tracing, ended universal contact tracing in April. NYC Health + Hospitals, which led the program in collaboration with the city’s department of health and other agencies, is planning to lay off 874 workers as a result of the program scaling back, according to a notice filed with state regulators March 4. The health system said affected temporary employees would be laid off at the end of April. Managerial employees affected by the layoffs will have their employment terminated between May 13 and May 27, according to the notice.
Several hospitals are trimming their workforces due to financial and operational challenges, and some are offering affected workers new positions.
1. Watsonville (Calif.) Community Hospital is preparing to lay off 658 workers, according to a notice filed with the state and shared with Becker’s Hospital Review. The hospital, which filed for Chapter 11 bankruptcy in December, expects the layoffs to occur between May 16 and May 23.
2. Toledo, Ohio-based ProMedica’s health plan, Paramount, is laying off about 200 employees in July after losing a Medicaid contract. Anthem acquired Paramount’s Medicaid contract, and ProMedica and Anthem have been working to identify open roles for employees affected by the layoffs.
3. NYC Test & Trace Corps, the city’s initiative for COVID-19 testing and contact tracing, is ending universal contact tracing by the end of April. NYC Health + Hospitals, which leads the program in collaboration with the city’s department of health and other agencies, is planning to lay off 874 workers when the program scales back, according to a notice filed with state regulators March 4. The health system said affected temporary employees will be laid off at the end of April. Managerial employees affected by the layoffs will have their employment terminated between May 13 and May 27, according to the notice.
4. MarinHealth Medical Center is laying off 104 revenue cycle and supply chain employees in April after entering into a contract with Optum to provide those services, according to a notice filed with state regulators in February. Greenbrae, Calif.-based MarinHealth said that as a result of the contract with Optum, all non-contractual revenue cycle and supply chain employees will be terminated from employment with the hospital on April 9. Optum is offering jobs to most workers affected by the layoffs. Employees who accept an offer will begin employment with Optum on the first work day following separation from MarinHealth, a spokesperson for the hospital told Becker’s Hospital Review.
5. St. Mary’s Medical Center in West Palm Beach, Fla., is laying off 49 employees, including 21 registered nurses, when it stops providing mental health services in April, according to a notice filed with state regulators.
6. West Reading, Pa.-based Tower Health closed Brandywine Hospital in Coatesville, Pa., on Jan. 31. As a result of the closure, 534 employees were laid off Feb. 7, according to a notice filed with state regulators.
7. Community Hospital Long Beach (Calif.) shut down and surrendered its acute care license to the state in December, according to the Long Beach Post. The hospital laid off 328 employees early this year, according to a notice filed with state regulators. The hospital said the layoffs would begin Feb. 1 and may come in stages. The hospital’s owner is planning to transition the facility into a behavioral health and wellness campus.
Several hospitals across the U.S. are laying off workers over the next three months.
Below are nine hospitals and health systems that laid off employees or announced plans to implement layoffs since Oct. 1.
1. Community Hospital Long Beach (Calif.) plans to lay off 328 employees early next year, according to a notice filed with state regulators. The hospital said the layoffs are set to begin after Jan. 31, 2022, and may come in stages. The layoffs are a result of Community Hospital Long Beach ending acute care and closing its emergency department.
2. Watsonville (Calif.) Community Hospital is preparing to lay off 677 workers, according to a notice filed with the state Nov. 29. The hospital entered Chapter 11 bankruptcy Dec. 5 and announced a tentative sale agreement with the Pajaro Valley Healthcare District Project. If the sale to the nonprofit group or another buyer is finalized by Jan. 28, all 677 employees will be terminated by Watsonville Community Hospital. CEO Steven Salyer said all potential buyers are being asked to offer employment to the hospital’s workers. If the sale isn’t finalized, the hospital will close after the bankruptcy court authorizes those steps, and all employees would be terminated Jan. 28, according to the notice to the state. Funds made available through the bankruptcy process may allow the hospital to delay the layoffs.
3. Pensacola, Fla.-based Baptist Health Care said in a notice filed with state regulators that it is eliminating 233 jobs in February when it outsources various services to Wayne, Pa.-based Compass One Healthcare. Affected employees were offered positions with Compass One at the same or higher wages, according to the Nov. 22 layoff notice.
4. West Reading, Pa.-based Tower Health filed a notice in early November with state regulators indicating it would lay off 293 employees by Dec. 31. The health system said the layoffs would affect workers at Jennersville Hospital in West Grove, Pa., which Tower Health was planning to close by the end of the year. In late November, the health system announced it entered into a definitive agreement to sell Jennersville Hospital and another facility to Canyon Atlantic Partners, a hospital management firm based in Austin, Texas. The health system subsequently called off that deal. It plans to close Jennersville Hospital on Dec. 31 and Brandywine Hospital in Coatesville, Pa., on Jan. 31. The closures will result in the loss of more than 800 jobs, according to the Philadelphia Business Journal.
5. Columbia University Irving Medical Center in New York City is laying off 56 workers in February, but affected employees will be offered employment with NewYork-Presbyterian Hospital, according to a notice filed with the state Nov. 8. The layoffs are due to the integration of electronic medical records systems at Columbia University Irving Medical Center and NewYork-Presbyterian Hospital, according to the notice.
6. Ascension Technologies, the IT subsidiary of St. Louis-based Ascension, outsourced about 330 tech jobs in November, according to a notice filed with the state. Affected employees could apply for other positions within Ascension Technologies or with the new vendor that took over the tech support for application and platforms, collaboration and end-user engineering, network and telecom and field services areas.
7. Middletown, N.Y.-based Garnet Healthlaid off 66 workers Oct. 29 when it closed its skilled nursing unit, according to a notice filed with the state.
8. Kindred Hospital Northwest Indiana, a 70-bed long-term acute care hospital in Hammond, is closing, resulting in 110 layoffs, according to a notice filed with the state in August. The layoffs started Oct. 10. Kindred said the closure is a result of Mishawaka, Ind.-based Franciscan Health’s decision to downsize its Hammond hospital, a move that will eliminate Kindred’s space on the campus.
9. Garland (Texas) Behavioral Hospital, part of King of Prussia, Pa.-based Universal Health Services, is closing and laying off its 119 employees, according to the Dallas Morning News. The layoffs started Oct. 7, according to a notice filed with the state.
Unemployment claims jumped last week, as the delta variant of the coronavirus sparked rising caseloads around the country and renewed fears about the potential for more restrictions and business closures.
The number of new claims grew to 419,000 from 368,000, the third time in six weeks that they had ticked up, according to data from the Department of Labor.
Economists said the uptick was concerning but cautioned that it was too early to tell whether it was a one week aberration or telegraphed a more concerning turn for the labor market.
“The unexpected bump in claims could be noise in the system, but it’s also not hard to see how the rise of the covid-19 delta variant could add thousands of layoffs to numbers that already are double what they were pre-Covid,” said Robert Frick, corporate economist at Navy Federal Credit Union.
Overall, unemployment numbers have been falling gradually from the peaks at other stages of the pandemic, but they are still well above pre-pandemic averages.
The jobless numbers have provided a jarring catalogue about the economic devastation wrought by the pandemic — spiking to records as the pandemic unfolded in March 2020, and remaining at historic high levels throughout most of 2020.
The coronavirus surge last fall helped precipitate a rise in claims that saw the labor market, as seen in the monthly jobs report, slide backward too.
But until recently, the last few months been marked by strong jobs growth and a sense of optimism as vaccinations picked up, giving economists hope that the country was back on track to recovering the nearly 7 million jobs it is still down from before the pandemic.
Now, the delta variant is driving an alarming increase in covid-19 cases around the country, according to public health officials: the number of new cases increased more than 40 percent in the last week, sending jitters through the stock market, and is raising questions about whether state and local health authorities will reinstitute restrictions to slow the virus’ spread.
Frick said that the report showed the potential for unemployment claims to start trending upward after months of steady declines.
“There’s definitely a correlation, however loose, that the rise in covid does cause a rise in claims,” he said. “My fear is that the rise in the delta variant could cause claims to go back up…Certainly one week doesn’t show that. But I wouldn’t be surprised if we start to see claims rise.”
However, there are also lots of signs that the economy continues to rebound despite rising caseloads.
The more than 2.2 million people that the Transportation Security Administration said it screened at airports on Sunday was the most since late February 2020 — and nearly three times the amount it was on the same day last year.
Restaurant dining has largely rebounded in recent months, at times surpassing the levels from before the pandemic — on Saturday the number of diners was 1 percent higher than the same day in 2019, according to data from Open Table.
Last week, some 12.5 million claims were filed for unemployment insurance overall, according to the most recent numbers — down from 32.9 million filed at the same point last year.
Nevada, Rhode Island and California topped the list of states with the highest number of people on unemployment, the Labor Department said.
Economic concerns in recent months have been more focused on the ways that workers are still held back from filling some of the more than 9 million job openings in the country, than unemployment, with high hopes that school re-openings in the fall will help many parents get back into the labor force.
HENRY KOTULA 