Becker's Hospital Review

8 CFO / FINANCE Hospitals cut jobs, services to resuscitate finances By Ayla Ellison H ospitals and health systems are facing many financial pres- sures this year, and more than half of hospitals are projected to have negative margins for the rest of 2022. Provider organizations are taking steps to grow revenue and reduce costs, including implementing layoffs and cutting services. Healthcare organizations in Michigan, Colorado and Ohio are among those cut- ting jobs as they navigate financial challenges. Citing financial pressures, BHSH System, a 22-hospital organization formed in February through the merger of Grand Rapids, Mich.- based Spectrum Health and Southfield, Mich.-based Beaumont Health, announced 400 job cuts in September. "Our health system, like others around the nation, is facing significant financial pressures from historic inflation, rising pharmaceutical and labor costs, COVID-19, expiration of CARES Act funding and reim- bursement not proportional with expenses," the health system said in a statement to Becker's. Centura Health is reducing its workforce by 1 percent across Colora- do and western Kansas. e Centennial, Colo.-based system, which includes 19 hospitals, cited inflation, supply chain disruptions and labor shortages as some of the most significant challenges it is facing. In Ohio, St. Vincent Charity Medical Center will lay off 978 employ- ees when it ends many services in November. e Cleveland-based hospital said declining inpatient volumes, the COVID-19 pandemic and other changes in the healthcare landscape have led to significant financial challenges. Financial pressures and labor challenges are leading many other hos- pitals and health systems to reduce service offerings. Dozens of hos- pitals have scaled back care this year with several cutting services in August and September. n Ascension to close hospital, lay off 133 workers By Ayla Ellison A scension is closing an Indiana hospital and nine medical practices, a move that will affect 133 employees, according to notices the St. Louis- based health system filed with state regulators. The health system is closing Ascension St. Vincent Dunn, a critical access hospital in Bedford, Ind., Dec. 16. Seven- ty-seven employees will be laid off as a result of the clo- sure. The health system said affected employees who do not secure another position within Ascension will be of- fered severance and outplacement services. Ascension said in September that it was unable to secure a buyer for the hospital. "We are committed to support- ing our Ascension St. Vincent Dunn community through this transition," Ascension said in a statement shared with Becker's Hospital Review. Ascension Medical Group St. Vincent is closing nine practice locations in Bedford and Mitchell, Ind., on Dec. 16. The clo- sures will impact 56 workers, Ascension said. Workers who do not move into another position within the health system will be offered severance and outplacement services. n University Hospitals cuts 443 administrative jobs By Molly Gamble C leveland-based University Hospitals announced efforts to reduce system expenses by $100 million Oct. 12, including the elimination of 326 vacant jobs and layoffs affecting 117 administrative employees. None of the employees affected by job cuts or layoffs provide direct patient care, according to a statement issued to Becker's by UH. The workforce reduction comes as the 21-hospital system faces a net operating loss of $184.6 million from the first eight months of 2022. Workforce shortages were one of several reasons the health system cited for the job cuts, along with an economic downturn that began with the surge of COVID-19 cases in early 2022, supply chain complications and high inflation. UH also noted "shifting demographics in Northeast Ohio," resulting in a higher percentage of patients covered by Medicare and Medicaid — federal reimbursement that has not kept pace with increased costs of care. "Although these actions are difficult, they will make UH stronger now and for decades to come in our continuing service to the community," the health system said. Employees affected by the reduction will receive a severance package in measure with their positions and tenure. UH noted it continues to have job openings in clinical areas, and encourages healthcare providers to apply. The cost reduction initiative follows service reductions at two UH hospitals — UH Bedford (Ohio) Medical Center and UH Richmond Medical Center in Richmond Heights, Ohio. In July, the health system cited staffing shortages as the primary reason for the end of inpatient, surgical and emergency services at UH Bedford and UH Richmond, effective Aug. 12. The services were rerouted to area UH hospitals. n

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