Ochsner Health is eliminating 770 positions in an effort to limit financial challenges, the health system announced Thursday.
These positions represent about 2% of Ochsner’s 36,000 employees at 47 hospitals and more than 370 health and urgent care centers in Louisiana and Mississippi.
Ochsner Health CEO Pete November pointed to rising labor costs, a shortage of clinicians, high inflation, and the end of federal COVID-19 funding as leading reasons. to the cut.
“It was the most difficult change we’ve ever had to make at Ochsner, but one that we must ensure remains a strong organization with the resources to deliver on its purpose and lead the way. for innovation and clinical excellence,” November wrote in a report. messages to employees at the New Orleans-based nonprofit health system.
Ochsner reported an operating loss of $96 million for fiscal year 2022.
The layoffs primarily affect non-direct patient care and management roles. In November, who moved into Ochsner’s top role last year, said physician roles would not be cut and affected employees with active clinical credentials would be offered positions. direct patient care.
Ochsner executives declined interviews in response to Thursday’s layoffs.
Health systems across the country have had to rethink where they allocate money to sustain their finances and operations. Many have chosen to cut back to non-clinical roles, especially as they continue to struggle to fill clinical positions.
Rapid City, South Dakota-based Monument Health laid off 80 employees last week, about 1.5% of its workforce. Most of the affected employees hold company service roles such as billing, marketing, and human resources. Last year, Renton, Washington-based Providence reduced its seven regional divisions to three, cutting several executive leadership positions in the process.
