Many are working in healthcare more than a year ago, but recent layoffs in health systems raise questions about what comes next for the industry.
Employment in the healthcare sector rose 3.8% year-on-year in the first quarter, according to preliminary data released Friday by the Labor Department’s Bureau of Labor Statistics. In outpatient care, employment increased by 3.8% and the number of people working in home health care increased by 4.8%. Employment at hospitals grew by 3.3%, according to the data, which could be revised in the coming months.
However, healthcare hiring seems to be slowing down. According to the report, the industry added about 33,900 jobs in March, compared with 54,900 jobs in February.
Health systems and other providers are adjusting to the post-pandemic environment by developing new models of care delivery while addressing labor and supply chain costs. higher. As a result, employers are scrambling to hire for high demand frontline positions like nursing, but other employees are being laid off in an effort to cut costs.
Earlier this week, Washington-based Tacoma, Virginia Mason Franciscan Health confirmed plans to lay off nearly 400 administrative staff, or less than 2% of its workforce, citing “great financial stress” big”. Kelly Campbell, vice president of marketing and communications at Virginia Mason, said affected employees are primarily in non-patient-facing roles, and the system continues to invest in frontline workers. mine.
Chicago-based CommonSpirit Health, where Virginia Mason has links, also hinted at pending employee layoffs.
“Like many healthcare providers, we are experiencing tremendous financial stress due to a number of factors,” a CommonSpirit spokesperson said on Friday. “We are taking steps to improve efficiency and effectiveness which may include changes affecting roles across our divisions and at the country office, as well as reducing our costs. when appropriate.”
A spokesperson said the changes will not affect patient care.
Last month, Crozer Health in Upland, Pennsylvania, said it was laying off more than 200 employees, or 4% of its workforce, as part of an organizational restructuring aimed at eliminating administrative overlap and cutting services are not used. The system estimates it incurs a loss of $7 million per month.
In February, Roseville, California-based Adventist Health announced plans to merge its seven care networks into five and cut dozens of positions, from administrative director to project manager.
Executive leadership is also at war. Novant Health in Winston-Salem, North Carolina, cut three top roles from the executive team last week: Jesse Cureton, chief client; Angela Yochem, director of digital and transformation; and Paula Dean Kranz, vice president of innovation support.
