CLEVELAND — Citing financial concerns stemming from the COVID-19 pandemic, University Hospitals has announced that it will be laying off 117 administrative employees and eliminating another 326 unfilled administrative positions.
"University Hospitals, as well as a large number of other hospitals in the region and across the nation, is facing an economic downturn that began with a resurgence of COVID-19 cases earlier this year and has been compounded by several other factors, such as supply chain issues, record-high inflation and an unprecedented workforce shortage," University Hospitals said in a statement. "These have made 2022 one of the most financially difficult years for health systems in the U.S.
"Adding to these challenges are shifting demographics in Northeast Ohio, resulting in a higher percentage of patients on Medicare and Medicaid, federal insurance programs which have not kept pace with the rising costs of care."
UH says that it has experienced a net operating loss of $184.6 million through the first eight months of 2022. In order to "take actions now to reverse this downward trend and preserve our ability to make future investments in our mission," UH says that it is reimagining how it delivers care at a lower cost "while also working to ensure UH delivers high-quality care with compassion and remains a great place to work."
The layoffs come as a part of an effort to reduce administrative costs, in order to "safeguard our investments in direct patient care."
In addition to the layoffs, UH says that it is undertaking other non-labor expense reductions, which when combined with the layoffs will lower expenses by in excess of $100 million.
"We reassure patients and the community that no employees delivering care are affected, and the quality of care will continue to meet our high standards," UH says. "In fact, we continue to have openings in clinical areas and encourage health caregivers to apply.
"Although these actions are difficult, they will make UH stronger now and for decades to come in our continuing service to the community."