CLEVELAND — University Hospitals is planning to eliminate more than 300 jobs as part of an "organizational reset" amid financial woes brought on by rising costs, the Cleveland-based healthcare system announced Wednesday.
UH said the cutbacks include a 10% reduction to its leadership structure. The hospital system said the "vast majority" of eliminated jobs are non-clinical and would cause "no impact to patient care." Employees who are laid off will receive severance packages.
“These decisions are never easy,” CEO Cliff A. Megerian said in a news release. “The important thing is that we make these strategic moves now so we can continue to serve our community and fulfill our mission for decades to come. We are thankful for our hometown team that delivers lifesaving care to our neighbors, friends and relatives each and every day.”
The reorganization comes as hospitals nationwide face financial headwinds. UH cited labor shortages, inflation and low Medicare reimbursement rates as factors preventing the nonprofit from overcoming what it described as "soaring costs."
Those rising costs offset a revenue increase of 9% year over year that UH attributed to "a variety of including increased access for patients and implementing a new electronic health records system."
UH said the cuts are part of a plan that has been in motion for the past three years to consolidate its services. The medical complex has shut down hospitals in Richmond Heights and in Bedford.
"The drivers of change and the solutions may be different, but we are committed to evolve our health system to adapt to meet the needs of our community today and into the future," COO Paul Hinchey said. "As hard as these changes are, they are part of a commitment to work every day to be a better UH for our patients, our community and our caregivers.”