Becker's Hospital Review

13 CEO / STRATEGY Healthcare job cuts up 91% from 2022 By Kelly Gooch H ealthcare/products companies and manufacturers, including hospitals, announced the third-most job cuts in 2023 among 30 industries and sectors measured, according to one new analysis. The finding comes from a Jan. 4 report from Challenger, Gray & Christmas, an executive coaching firm that examines job cuts by U.S.-based employers. Healthcare/products companies and manufacturers, including hospitals, announced 58,560 job cuts in 2023, a 91% increase from the 30,626 cuts announced the year prior. Across all industries and sectors measured, companies announced plans for 721,677 job cuts last year, up 98% from the 363,824 cuts announced in 2022. This is the highest annual total since 2,304,755 cuts were announced in 2020. With the exception of 2020, it is also the highest total since 2009. "Layoffs have begun to level off, and hiring has remained steady as we end 2023. That said, labor costs are high. Employers are still extremely cautious and in cost-cutting mode heading into 2024, so the hiring process will likely slow for many job seekers and cuts will continue in Q1, though at a slower pace," Andy Challenger, labor expert and senior vice president of Challenger, Gray & Christmas, said in the report. While job cuts increased in healthcare in 2023, the healthcare labor market showed some signs of stability toward the end of last year. The quits rate was lower nationally at the end of November but stayed relatively consistent in the healthcare and social assistance sector, according to the Bureau of Labor Statistics, which released its latest Job Openings and Labor Turnover Summary Jan. 3. The quits rate stayed at 2.3% from September through November. n —- to expand services and increase access to care. "Innovative thinking is critical for success, and quite frankly survival in our industry, so health systems should already be investing in growing in-house expertise dedicated to ideating new models of care, but in three years, these efforts should be producing tangible returns," Dr. Megerian said. Hospitals and health systems that financially recover from the last three years will be compelled to reduce services and re-evaluate the scope and breadth of their current services, according to Ronda Lehman, president of Mercy Health-Lima (Ohio). "I hope that we will see additional alignments where health systems are leveraging not just their own strengths, but also looking to other less likely partners to collaborate with. We need to continue to meet consumers where they are at, and relentlessly continue to strive to incorporate 'health' into people's everyday lives, rather than allowing barriers to obtaining care," Ms. Lehman told Becker's. "I also believe we will see greater risk-based contracting for all health systems, recognizing that this is vital for us to improve the total health of our communities." e hospitals of tomorrow are being planned today, and the most successful health systems will be able to provide complete care and coverage. "On the care side, that means having invested in fully integrated care, serving patients beyond acute care settings, and filling in gaps in care to make healthcare easier, more accessible and more affordable," Amy Perry. president of Phoenix-based Banner Health, said. "Coverage, or premium-based revenue, allows health systems to prioritize health outcomes and quality of life. All of this must be fueled and integrated by the smart application of emerging technology. Health systems must accelerate their ability to transform." n 'Everyone is nervous': Indiana system CEO on rising hospital closures By Madeline Ashley A s hospitals and services continue to shut down due to financial challenges and labor shortages, many healthcare leaders are growing more concerned. "I think everyone is nervous," David Dunkle, MD, CEO of Franklin, Ind.-based Johnson Memorial Health, told Becker's. "When we get together, it's not, 'How are you doing,' it's, 'How bad are you doing?' en, 'What are you doing to turn things around?'" An independent health system, Johnson Memorial was started in 1947. e one-hospital system also has primary care centers, urgent care centers, and more than 100 physicians and other providers. While Dr. Dunkle said he feels good about the health system from a quality and employee morale standpoint, he is concerned about financials. "I feel that, once again, we're not getting reimbursed for what we do. I feel that it's almost criminal the way the system has gone towards denials and making it harder for hospitals to do what they need to. Look at the rising costs of drugs, drug shortages. It's getting more difficult to navigate healthcare," Dr. Dunkle said. Dr. Dunkle said he's also seeing a yearly increase in employees who are not responsible for direct patient care.

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