Fierce Healthcare is tracking workforce changes across healthcare in 2025. Stick with this tracker for the latest updates, and reach out to the team with any layoff news. Also, take a look back at our 2024 tracker.
June 12
Blue Cross Blue Shield of Michigan eliminates 600 positions, including 220 layoffs
As part of an ongoing push to reduce its administrative overhead, Blue Cross Blue Shield of Michigan will eliminate more than 600 non-union positions, including layoffs.
The job cuts include 400 open positions plus 220 layoffs, the insurer confirmed in a statement.
Last year, BCBSM set a goal of lowering administrative expenses by $600 million over the next three years. Earlier in 2025, the insurer offered a buyout for non-union employees, with more than 500 people choosing to take the voluntary separation offer. This generated $94 million in savings, according to the statement.
The insurer added that it has also eliminated about 250 contractor roles in the past several months.
In 2024, BCBSM was able to generate more than $200 million in administrative savings, launching the BCBSM Accelerated program to drive further efficiency improvements.
"As a nonprofit mutual health insurer, we must manage our finances responsibly, with the interests of our customers and members front-and-center," the insurer said in the statement. "We owe it to our customers and members to be responsible stewards of their money by looking inward and taking steps to lower our own costs and maintain the quality services they expect."
June 10
Molina Healthcare lays off Virginia health plan employees
Molina Healthcare of Virginia is permanently closing its health plan June 30, the insurer recently notified the state in a WARN Act filing.
The decision will impact 268 employees, who will not receive bumping rights. There will be about 65 care managers, 17 community connectors, two housing specialists, a director of healthcare services, a chief medical officer and three vice presidents impacted.
Molina recently lost a bid to retain its Cardinal Care Managed Care program contract with the state, which offers Medicaid coverage to enrollees. The state instead awarded contracts to Aetna, Anthem, Humana, Sentara Health Plans and UnitedHealthcare.
Former Molina members will be transferred under Humana's plan starting July 1. They will be given 90 days to opt for a new insurer, the state said in a notice May 29.
Molina did not immediately respond to a request for comment.
The insurer receives most of its revenue from its Medicaid business and serves about 5.8 million members. The company is actively looking at M&A opportunities.
June 9
Prime Healthcare's post-acquisition consolidations cut over 100
In the wake of its eight-hospital purchase of Ascension Illinois, Prime Healthcare confirmed that "a small number" of duplicative positions will be cut.
"Most" of the roles do not directly provide patient care and no union roles are affected, according to a statement from the system. The consolidation, it said, affects less than a percent of the almost 13,000 workers who crossed over with the deal, "and nearly 1,000 new jobs [were] already created." Media reports peg the cuts at slightly over 100 roles.
Additionally, Prime said it is inviting those affected to apply to "comparable positions" being offered. There are more than 900 open jobs among Illinois facilities, including some union roles, it said.
"Importantly, these efforts will not affect the quality of care we deliver to the communities we serve and in fact will help expand best practices from across the nation," the system said. "All decisions made at our Illinois facilities are guided by our mission to improve quality, strengthen care delivery, preserve access in underserved areas and ensure long-term sustainability."
Prime was recently spotlighted by federal lawmakers, who asked the system to justify why some of the acquired hospitals suspended or closed some service lines. Prime, in response, said the decisions were communicated to state health regulators and community partners, and were necessary to ensure its facilities remain financially sustainable.
Virginia Mason Franciscan Health lays over 116, with more roles affected
Tacoma, Washington-based Virginia Mason Franciscan Health will begin laying off 116 workers on July 28, according to a June 8 WARN filing.
The cuts come from its virtual health services team, according to the filing. In statements given to press, a representative said the filing reflects a wider shift of the organization's virtual services and administrative functions.
That effort will affect about 200 employees at the 10-hospital system, they said, and reflects financial pressures including new budgetary taxes in Washington state expected to cost Virginia Mason an extra $30 million per year. The organization employs more than 18,000 people.
June 3
Hims & Hers lays off 68 employees
Online health and wellness company Hims & Hers has reduced its workforce by 4%, laying off 68 employees, the company confirmed to Fierce Healthcare.
In a statement, a Hims & Hers spokesperson said the workforce reduction aligns with the company's long-term strategy.
"To align Hims & Hers with our long-term goals and deliver on our ambitions, we’ve made the difficult decision to part ways with some of our colleagues. While not easy, this step reflects our commitment to invest in the areas that will define our future. These changes are focused on sharpening how we execute, without affecting our priorities or the specialties we’re committed to. As part of this broader change, we will continue to actively hire for roles critical to our long-term strategy," the spokesperson said.
The company has 88 open positions, according to a page on its website.
Hims & Hers recently announced it raised $1 billion through convertible senior notes to grow its international business and invest in artificial intelligence capabilities. The company is eyeing global expansion through both organic growth and strategic acquisitions, executives said.
In fact, on Tuesday, the company announced its intent to acquire European digital healthcare provider Zava in an all-cash deal. It’s part of a broader effort for the telehealth brand to expand internationally, the company said.
The company has seen strong growth with first-quarter revenue doubling year-over-year to reach $586 million, boosted by its weight loss business.
The company's shares soared in April after it announced a long-term collaboration with Novo Nordisk to offer consumers easier access to weight loss drug Wegovy.
May 29
Carelon shuts down Ireland operations
Carelon Global Solutions, a health tech company under the parent insurer Elevance Health, is shuttering its Ireland-based operations.
On its website, Carelon says its Ireland location is the "epicenter of our natural language processing and artificial intelligence innovations" to "deploy solutions that accelerate claims processing and enhance customer service so healthcare providers can focus on patient care." The company also has locations in India, the Philippines and Puerto Rico.
"After carefully considering alternatives and conducting a consultation process with employee representatives, we have made the difficult decision that we will cease our operations of Carelon Global Solutions Ireland Limited," a spokesperson confirmed to Fierce Healthcare. "The process to close operations will occur over the course of the next several months, and we expect it to be completed by the end of 2025. We greatly appreciate the work and dedication from associates in Ireland over the past few years and are committed to supporting them during this time."
Ireland news publications are reporting more than 300 people will be laid off. The decision was hinted at by management in March.
May 29
Devoted Health trims workforce
Medicare Advantage insurance startup Devoted Health cut 5% of its workforce, or 120 employees out of 2,460, earlier this month.
The layoffs impacted various departments, a Devoted Health spokesperson told Fierce Healthcare. The spokesperson described the cuts as normal rightsizing as typical for high-growth companies. Devoted Health is still growing and hiring for other roles, the spokesperson said.
“Devoted Health’s recent workforce changes are in line with our ongoing commitment to dramatically improving the health and well-being of older Americans and growing our presence across the country. We are grateful for the contributions of all affected employees and are providing support for them during this transition," the spokesperson said in a statement provided to Fierce Healthcare.
The company, which was founded in 2017 by brothers Todd and Ed Park, says it provides "all-in-one" care for older Americans by combining Medicare Advantage coverage with its virtual and in-home care provider, Devoted Medical, as well as partnerships with leading providers.
The company has raised $2.256 billion, according to data from SignalFire. Last year, Devoted completed a $287 million series E round, raising $175 million in 2023 and adding $112 million in August.
May 28
PeaceHealth reduces workforce by 1%, freezes hiring
PeaceHealth confirmed it is "eliminating some caregiver roles and closing some open positions" in light of "financial challenges" facing the nonprofit Catholic system and the industry at large.
The cuts amount to 1% of the workforce, which tallied over 16,000 employees during the organization's 2024 fiscal year. PeaceHealth runs nine medical centers and over 160 clinics in Washington, Oregon and Alaska.
In a statement, the system said it is offering "comprehensive transitional support" to those affected and is "working to match qualified caregivers with open clinical roles across PeaceHealth" when able. The statement also noted adjustments to the system's operations and services.
Alongside the cuts, PeaceHealth will be implementing a hiring freeze affecting most roles through the end of the year, with exceptions including clinical and patient-facing positions.
May 16
UCare trims 5% of workforce
Minnesota-based nonprofit health plan UCare is eliminating 80 full-time roles, or about 5% of the company's workforce, as part of a restructuring, the company confirmed Friday.
The broader push "includes realignment of key leadership roles," according to a news release.
"We value every employee at UCare, and we minimized layoffs as best we could,” President and CEO Hilary Marden-Resnik said. “Our new organizational structure is necessary to deliver on our strategic priorities and financial turnaround plans. At the same time, we will maintain our high standards of service to members.”
Layoffs will not impact services to members, a spokesperson told Fierce Healthcare. Impacted employees will receive outplacement support.
A WARN Act filing has not been published on the Minnesota Department of Employment and Economic Development website at the time of publication. It's unclear which positions specifically were targeted as part of the layoff round.
The layoffs were first reported by the Star Tribune. The company reported an operating loss of $504 million in 2024.
May 12
Carle Health to begin laying off 612 employees amid health plans' shuttering
Illinois-based integrated health system Carle Health has informed the state it will begin laying off 612 employees on July 8, according to a WARN Act filing.
The organization has more than 11,000 employees across its eight hospitals, practice locations and health insurance plans. The cuts relate to the latter, as subsidiary plans Health Alliance and FirstCarolinaCare had announced in February plans to close all business lines except Medicare 2025 as "they have not been able to reach a financially viable level to compete effectively in today's environment."
While those plans will continue operations and "full support of member services" through the end of the year, Carle said in a statement that the organization is planning to reduce staff during the winddown.
"Estimated exit windows were communicated to all impacted team members earlier this year to provide as much notice and clarity as possible," the organization said in a statement. "Carle Health will continue to help team members as they transition into new professional opportunities."
May 8
NewYork-Presbyterian Hospital cuts 1,000 employees
NewYork-Presbyterian Hospital has confirmed it will be laying off roughly 1,000 employees—about 2% of its 50,000-person workforce.
The system, in a brief statement, attributed the "difficult decision," to "current macroeconomic realities and anticipated challenges ahead." It did not disclose what types of workers were impacted, a timeline for the cuts or any planned severance or similar benefits to those affected.
The nonprofit is affiliated with Columbia University and runs six adult acute care hospitals (including the flagship Irving Medical Center), a pediatric hospital and a behavioral health center. Additional facilities are part of its Regional Hospital Network.
April 29
CVS scraps Aetna Carefree insurance plan, trims workforce by 55
CVS Health is cutting 55 employees in Connecticut, the second time this year the insurer has made a WARN Act filing.
The layoffs are due to the closure of the Aetna Carefree line of business. Aetna Carefree offers Medicare plans and services to agents who sell health insurance. Layoffs will take place starting July 26 through the end of the year, and the employees mostly work remotely outside of Connecticut but report to the Connecticut headquarters.
Impacted employees include executive directors of sales, lead decision scientists, government program operations managers and senior financial managers and analysts, per the filing.
"We are sunsetting CareFree operations by the end of this year as part of our work to optimize our core business operations," a spokesperson told Fierce Healthcare. "We are working with external agencies to provide assistance, where possible, to facilitate the transition to another field marketing organization's hierarchy. Impacted colleagues have been notified and will be eligible for severance pay, continued benefits, and access to outplacement services."
The insurer has already laid off 35 employees in the state this year, as well as terminated employees in Rhode Island, Kansas, Massachusetts due to the closure of its ACO REACH program and losing out on a state Medicaid contract award.
April 24
Blue Shield of California, Kaiser Foundation Hospitals face new layoffs
Two California-based health organizations are laying off employees, Blue Shield of California and Kaiser Foundation Hospitals announced in WARN Act filings.
Layoffs at Blue Shield of California will take place May 1 for 20 employees, and the layoffs will be permanent for the remaining employees June 25. The 113 impacted workers are based at eight different locations across the state.
They held roles such as senior automation engineers, senior platform administrators, program management consultants and bilingual direct sales representatives for the state Medicaid program. Also terminated were two senior regional medical directors and two strategic planning and performance principals.
"With members at the center of everything we do, ensuring we have the right roles, talent, skills, and capabilities in place to deliver on our mission is critical," a Blue Shield of California spokesperson told Fierce Healthcare in a statement. "At times, this means making the difficult decision to reduce our staff, which in this instance impacted less than 1% of our workforce."
The company said they encourage the impacted workers to apply for other positions internally, and will be supported with a certified professional coach and "additional" severage benefits. The workers will be able to remain at their current position for up to 90 days.
At Kaiser, employees were notified April 14 and April 21. In addition to a director of emergency management, talent acquisition workers and various data management roles, the company also let go of educational theater workers.
"Educational Theatre uses music, comedy and drama to inspire audiences of children, teens and adults to make healthy choices for themselves and their communities," a Kaiser Permanente webpage reads. "The performances and workshops, led by professional actor-educators, address the most pressing health issues of the day, including healthy eating and active living, conflict management and STD prevention."
The company is ending its educational theater division, which was already diminished since the pandemic, reported The Denver Gazette.
"We do not make these decisions lightly," said a Kaiser spokesperson in a statement. "The people affected by these staffing changes have made important contributions to Kaiser Permanente. We are helping them transition into other roles within Kaiser Permanente or, where necessary, will provide generous severance packages, career support, and outplacement services."
In total, 71 roles at Kaiser were eliminated. Kaiser Permanente posted an 0.3% operating margin in 2024.
Blue Shield of California terminated at least 201 employees last year across two separate filings, and more than 370 workers saw the axe in January 2023. Kaiser Foundation Hospitals
April 23
UNM Health eliminates 53 leadership roles
To ensure that it is "as prepared as possible for federal funding changes which may lie ahead," UNM Hospital, the flagship hospital of UNM Health System, has eliminated 53 leadership positions as it reviews its labor expenses and organizational structure, a representative confirmed.
The New Mexico academic system said it has faced financial challenges in the wake of the COVID-19 pandemic "like many hospitals nationwide," and has implemented "a number of financial improvement initiatives" amid an uncertain funding landscape.
Alongside the cuts, the organization is also reviewing its contract expenses and its workflows in order to increase its efficiency and reduce spending, the representative said.
"By taking these steps now, UNM Hospital is positioning itself to balance its current and future budgets," they said. "UNM Hospital remains committed to what is most important- providing health care for New Mexicans, in New Mexico."
April 14
Cigna trims NJ workforce by 62
Cigna Evernorth Services is laying off 62 workers in New Jersey, the insurer told the state in a WARN Act filing.
One employee was laid off March 15, another on March 29 and seven more on April 12, the notice shows. There will be 53 more workers impacted July 3. The notice only namechecked software engineers as the impacted job titles. The workers will receive severance.
The Evernorth group laid off 261 employees in Arizona last year to consolidate primary care locations and "wind down specialty service," Fierce Healthcare previously reported. Evernorth is the medical practice division of Cigna.
Cigna did not immediately return a request for comment.
April 9
Post-merger Sanford Health cuts 96
Now three months beyond its merger with Marshfield Clinic Health System, Sanford Health has confirmed that the integration requires "realignment and consolidation of leadership and administrative roles and re-scoping of responsibilities."
A reported 96 roles will be impacted, though the nonprofit system specified that no direct patient care roles are being affected. The consolidation comes as Sanford works to make Marshfield's organizational structure "consistent with our other health services delivery regions ... to make sure we are working as effectively as possible and being good stewards of the resources entrusted to us," the organization said in a statement.
Sanford said it is still committed to the five-year, $500 million investment across Marshfield's region and converting its EHR over to Epic. It also reportedly said it will be adding 20 new positions as it integrates the Sanford and Marshfield health plans.
"At the end of every decision we make there is a patient," Sanford said in its statement. "As we continue our journey together, we look forward to expanding care for the communities we serve, now and in the future."
April 2
Point32 lays off 110 workers
The parent company of Tufts Health Plan and Harvard Pilgrim Health Care will be eliminating 110 employees from their positions.
The layoffs include impacted workers in mid-to senior-level positions, a news release explained.
Point32Health outlined to a desire to reduce administrative costs while "medical and pharmaceutical trends continue to climb to unprecedented levels," the company said.
“We do not take the decision to reduce our workforce lightly and it is made with great consideration,” said Eileen Auen, executive chair, Point32Health. “Administrative cost reductions is one action within our control.”
The news was first reported by the Boston Globe.
March 26
Penn Medicine eliminates 300 positions
The University of Pennsylvania Health System will be cutting about 300 positions amid its work "to ensure strong financial footing," a spokesperson confirmed.
The eliminations, reportedly disclosed to employees March 25 via an internal email, will include more than 100 positions that are "either vacant or held by employees who had already announced their plans to retire in the coming months," the spokesperson said.
Penn Medicine has roughly 49,000 employees and back in 2023 had laid off an undisclosed number of administrative positions. Those impacted in the latest round have been notified and will be receiving career transition services as well as salary and benefits continuation "for a period of time consistent with [the system's] policies," the spokesperson said.
"The position eliminations will not result in discontinuation of any patient care services or programs," they added, though there was no indication as to what type of roles are being eliminated.
March 24
Yale New Haven Health restructure could hit 'up to 38 individuals'
Connecticut's Yale New Haven Health "is redesigning its operating model" to consolidate its leadership team, a representative of the nonprofit system said in a statement.
That plan "will include changes to several management and administrative positions. Most individuals in existing positions will have opportunities within the new structure; however, their roles may change," the representative said.
There will be cases in which new positions won't be available, and "pending individual decisions, up to 38 individuals ... may no longer have a position within the organization," they said.
The five-hospital system has more than 31,000 employees, making it Connecticut's second-largest employer. The restructure is intended to streamline decision-making and "allow us to maintain a consistent care signature for the patients we serve today, while growing to serve more patients across our region," according to the statement.
March 7
Blue Cross of Idaho trim workforce after losing duals contract
Blue Cross of Idaho is reducing its workforce by 135 employees, the insurer confirmed to Fierce Healthcare.
The company blamed the layoffs on the state health department's decision to not award Blue Cross of Idaho a contract over its dual-eligible population. The state partnered with Blue Cross of Idaho to create the dual-eligible program in 2014, but Idaho opted to choose just UnitedHealthcare and Molina Healthcare in December 2024 for its next contract round.
“Unfortunately, the loss of this program will require us to reduce our workforce, specifically the 135 employees directly related to the care of the dual population," said a Blues spokesperson. "This is a decision no one at the company takes lightly and is in no way a reflection of the quality of work and care accomplished by these employees. They have and will continue to support the duals members with dedication and compassion in the wake of [the state's] decision."
Blue Cross of Idaho serves more than 583,000 members. The news was first reported by BoiseDev.
March 4
CVS axes 183 workers in Massachusetts
CVS Health is further reducing its workforce, this time by 183 workers in Massachusetts.
Only three of the employees were Massachusetts residents, whereas the rest of the employees worked remotely out of state, a WARN filing shows. The company is permanently shutting down its ACO REACH business, and most of the layoffs will take effect May 3. Impacted workers include a chief medical officer of accountable care, a vice president of product & strategy for accountable care, case managers, community health workers, risk education consultants and senior clinical strategists.
“We remain committed to supporting these colleagues, who will receive severance pay and benefits, including access to outplacement services,” a CVS spokesperson told Fierce Healthcare in a statement. The spokesperson did not give further indication on the company's stance toward the ACO REACH program.
This year, the company has announced layoffs in Connecticut, Rhode Island and Kansas. CVS previously announced it would trim the jobs of 2,900 workers, mostly in corporate positions, to save more than $2 billion in expenses
Feb. 24
United Medical Center closure to leave 485 jobless
United Medical Center in Washington D.C. will be permanently closing on April 15, leaving 485 people who work at the city-owned hospital out of a job.
The cuts were disclosed to the district's Department of Employment Services on Feb. 20 in a WARN notice filing, which has the layoffs occurring on "various dates through Sept. 30, 2025."
The nearly 60-year-old hospital announced its closure plans earlier this month in an online notice to its patients. That release highlighted the opening of the full-service Cedar Hill Regional Medical Center, owned by Universal Health Services, concurrent with the April 15 closure.
Feb. 24
Orlando Health closing Steward-acquired hospital, offers new positions to 940 eliminated workers
Orlando Health is closing one of the hospitals it acquired during Steward Health Care System's bankruptcy, a decision that will impact 940 of the hospital's employees, according to a WARN notice filing.
However, the system wrote that it is guaranteeing positions for any of the affected employees "who are in good standing and are open to taking jobs at other Orlando Health facilities." The system previously said it has over 3,000 open positions that could be filled.
Orlando Health will be kicking off job transition workshops, career counseling and career fairs to those whose positions were eliminated.
The 298-bed Rockledge Hospital is slated to close on April 22. It was one of the facilities Orlando Health acquired from Steward with the intention of preventing a shutdown—however, in statements given to press, the system said post-purchase inspections revealed "years of neglect" and extensive maintenance needs that would prove more costly than a fresh rebuild. Orlando Health said it plans to demolish Rockledge Hospital and begin work on a new facility.
Feb. 24
Kindred Hospitals' long-term care closures cut 157 jobs
Over 150 people will be losing their positions following the closure of two long-term acute care hospitals owned by Kindred Hospitals, which is part of ScionHealth, according a WARN notice and the Chicago Tribune.
Seventy-four come from the 103-bed Kindred Chicago Lakeshore, and 83 from the 64-bed Kindred Hospital Sycamore. The system previously said it planned to close the facilities by April 30, but is pushing a state regulator to permit an earlier shutdown. The facilities had been running at relatively low occupancy, prompting the decision to begin sending their patients to other nearby facilities run by Kindred.
In a statement to press, Kindred said it has offered other roles at its hospitals to "substantially all employees, including all frontline employees in good standing."
Feb. 21
Corewell Health eliminates administrative staff
Corewell Health, a 21-hospital nonprofit based in Michigan with over 65,000 employees, has confirmed layoffs affecting non-clinical workers.
The system declined to specify how many workers were affected, or whether any severance or other resources would be available to them.
"Like health systems across the country, we have made some staffing changes in some non-patient facing, administrative roles," it wrote in an emailed statement. "These changes will help us continue to provide high-quality care for the long term in a challenging economic environment for healthcare. We are grateful for the contributions and service provided by our team members."
Social media posts cited by media reports on the layoffs suggest about 190 employees, some of whom were remote or worked on medical coding and billing, were affected.
Feb. 13
Optum eliminates 71 positions in New Jersey
Optum Services is letting go of 71 workers in New Jersey, the company announced in a WARN filing at the end of January.
The layoffs will take effect April 23. There will be 14 clinical review coordinators losing their job, in addition to several pharmacy care coordinators, customer service supervisors and nurse practitioners.
It is the latest mass layoff posting from the company in New Jersey, which announced a reduction in force of 160 employees in its OptumCare division.
Optum's stated reason for the layoffs was “alignment of capabilities and services to meet the evolving needs of our business and those we serve.” Workers can receive benefits through the Employee Assistance Program for up to 36 months and health benefits through COBRA.
The company employs more than 6,000 people in New Jersey and is currently hiring, the company told Fierce Healthcare.
Last year, Optum discontinued its virtual care division, and mass layoffs at Optum Home & Community Care, Landmark Health and naviHealth. An Optum facility in Toledo, Ohio closed by September.
The company announced it was laying off 524 workers and closing 15 locations in California.
Feb. 11
Queen’s Health Systems removing, adjusting nearly 100 jobs
The Queen’s Health Systems, a nonprofit health system and Hawaii's largest employer, shared on Feb. 6 that it would be trimming positions to improve operational efficiency.
According to a statement from President and CEO Jason Chang, the changes would affect "less than 1%" of the system's 9,500-person workforce. A representative of the Hawaii Nurses' Association told Hawaii News Now that seven union nurses were included among the "nearly 100" layoffs.
Chang said the organization was "deeply committed to supporting [those affected] as they explore other opportunities, both within our health system, where we have a number of openings, as well as externally." He also said Queen's Health Systems would be "providing them with resources to assist with applications and job searches."
Feb. 10
Mass General Brigham announces wave of nonclinical layoffs amid budget deficits
Nonprofit giant Mass General Brigham will be laying off numerous nonclinical employees to close major budget shortfalls.
The organization declined to share how many employees may be affected. A representative instead pointed to a $250 million two-year budget gap the system is working to close, but noted that the total is “not a direct correlation to the number of roles.”
The integrated health system is Massachusetts’ largest private employer with more than 80,000 workers and $20.6 billion in total operating revenue for the fiscal year ended Sept. 30.
CVS cuts workforce by 87 employees
CVS Health is expanding the scope of its layoffs in Connecticut and is cutting more workers in Rhode Island.
In Connecticut, the company filed two separate WARN notices in recent weeks, announcing “further reductions” following a round of layoffs starting in October.
The insurer let go of 35 employees, 13 of which worked in-person. Other employees worked from other states. Impacted positions include nurses, clinical support and financial analysts. The layoffs will take effect in March and June.
In Rhode Island, 38 employees will be let go in June, a WARN filing states. In Minnesota, at the tail end of January, CVS announced 14 employees would not be retained.
The company also laid off 164 workers in Kansas, citing a need to reduce its workforce after unexpectedly missing out on a Medicaid contract in the state, reported Fierce Healthcare.
Baystate Health trims 98 corporate positions
Massachusetts-based nonprofit Baystate Health confirmed Tuesday that it is eliminating 98 positions across the organization—some of which were vacant, and some of which will result in "individuals leaving Baystate."
The five-hospital system said it is working to find different roles for some of those affected, and will be providing severance pay and "other job support, including access to career transition services" for others who are eligible.
The affected positions represent less than a percent of Baystate's nearly 13,000 workforce and reflect corporate roles. The system continues "to aggressively recruit, hire and retain physicians, Advanced Practice Providers and bed-side caregivers," according to a statement.
Baystate has been working to tighten its organizational structures since October. November saw the kickoff of a "$225 million transformational journey," which was accompanied by 134 layoffs among those in management positions.
"We have active workstreams right now in workforce, supply chain, pharmacy, and revenue cycle management, amongst others," the system said in its statement. "Our disciplined focus on core operations and strategic growth must become part of our daily routine."
Highmark Health IT subsidiary lays off 208 workers
Feb. 4
enGen, the information technology subsidiary of Highmark Health, has laid off 208 employees, the insurer confirmed to Fierce Healthcare.
Of the affected workers, 186 are individual contributor positions and 22 are management level.
Highmark said in a statement it is “transforming to meet the changing needs” of the company to operate more efficiently.
“We are focused on building the workforce of future [sic], which requires identifying talent gaps, investing in in-demand roles, such as nursing, and adapting technologies, such as AI, to better anticipate demand and drive value for consumers,” a spokesperson said in a statement. “We are also looking for opportunities to transition/centralize/shift work that enables our employees to leverage their skill sets and work at the top of their license.”
Workers resided in Pennsylvania, West Virginia, New York and other states, the Post-Gazette reported.
In a similar statement last year, the company said Highmark was looking to developing the workforce of the future and invest in nursing and AI.
Endeavor Health cuts over 100 jobs
Jan. 30
Endeavor Health, a nine-hospital system in Illinois formerly known as NorthShore — Edward-Elmhurst Health, confirmed plans to discontinue inpatient psychiatric services at its Northwest Community Hospital beginning April 11.
The decision is expected "to impact approximately 100" hospital employees who the system is "hopeful" will take up other positions within the organization.
"This change is driven [by] a sustained decrease in demand for inpatient behavioral health services as we have seen an increased emphasis on outpatient and community-based care and telehealth services, and the opportunity and need to align our expertise and resources to provide safe, high-quality patient care," a representative wrote in a statement. "We have an exceptional, dedicated behavioral health team at NCH, and we remain committed to helping them explore other opportunities at and beyond Endeavor Health."
The organization said it doesn't expect the service line closure will harm local access to care due to "excess capacity" around the hospital and the broader system. There will be no changes to outpatient behavioral care at the hospital, which "remains as strong as ever" and is slated to grow as the system adds providers, creates specialty programs and integrates counselors with primary care offices.
Beyond the service line closure, the statement also addressed a separate "small number of individuals impacted across various other areas of our organization." The system did not specify how many employees this includes, but said "[t]he number of impacted individuals is relatively small given the size of the health system, and we are committed to supporting all those who are impacted."
GuideWell cutting 3% of workforce
Jan. 27
GuideWell, the parent company of Florida Blue, is reducing its staff by 3% as it takes steps to "streamline" the organization, a spokesperson confirmed to Fierce Healthcare.
While GuideWell did not say how many individuals this impacts specifically, the company did not that it would include people working in 29 states. GuideWell chose to make some organizational shifts as it focuses on "adapting to changing market conditions as part of our continuous focus on operational effectiveness and efficiency," the spokesperson said.
The effected employees and the organization broadly will be supported during the transition period, the spokesperson said.
"The health care industry is facing complex challenges, including competitive market conditions, regulatory changes, and rising medical costs," they said. "We are driving necessary innovation and transformation to keep healthcare costs under control, advance operational excellence, and make improvements in care for our members."
"GuideWell and its Florida Blue subsidiary are mission driven, financially strong, and well-positioned for the challenges and opportunities ahead," the spokesperson said.
Cleveland Clinic eliminates 114 administrative management roles
Nonprofit health system Cleveland Clinic said it is cutting 3% of its administrative management to create "efficiencies in how we manage our organization," CEO and President Tom Mihaljevic, M.D., said during Jan. 27 "State of the Clinic" address.
The cuts, which were reported in press a few days prior, spanned multiple departments in nonclinical areas. Those affected may apply to other open positions within Cleveland Clinic or opt to accept a severance package, per the reports.
The eliminations come as Cleveland Clinic disclosed above-expected revenues for 2024 as well as a 1.7% operating margin, which Mihaljevic said fell below the organization's 2.7% target. He attributed the shortcoming to an “unexpected increase in charity care totaling $370 million,” smaller discounts on drug treatments and surging malpractice insurance costs. Accompanying materials also pointed to workforce shortages and inflation.
“This type of decision is never easy and we are supporting our administrative managers during their transition,” he said during the address.
Lehigh Valley Health Network lays off 'approximately 100'
Jan. 22
Pennsylvania's Lehigh Valley Health Network confirmed "approximately 100" layoffs following "some changes in areas that provide outpatient care to align the staffing structure with community needs," according to a statement provided by a representative of the health system.
The organization employs more than 23,000 people and runs hospitals and other outpatient locations across 10 counties in eastern Pennsylvania. Last summer it merged with nearby academic system Jefferson Health, creating a combined organization of 65,000 workers, 32 hospitals and more than 700 care sites serving the tristate area.
Adjustments that led to the layoffs began "well in advance" of the merger "as a way to ensure operational efficiency so that we can invest in the programs and services our communities need," according to the statement. No information was given about specific roles affected, severance or other support for those affected.
Blue Cross Blue Shield of Michigan offers buyouts
Jan. 21
Workers for Blue Cross Blue Shield of Michigan are considering whether to accept employee buyouts as the health plan looks to shed $600 million in administrative costs over several years.
The insurer says increased medical utilization and rising prices for prescription and specialty drugs are two primary reasons for the buyouts. It will now offer voluntary separation until the end of the month for more than 700 employees who are retirement eligible this year.
“Our company has lost more than $1 billion on our core health insurance business in two years, and these costs are now weighing heavily upon our ability to continue providing affordable health coverage,” said a spokesperson. “As we take double-digit premium increases out to our fully-insured customers now to account for the higher costs we are experiencing, we have a responsibility to look inward and take steps to lower our own costs.”
BCBSM needs to cut $285 million in costs this year alone, reported the Detroit Free Press, but an internal memo circulated to employees did not indicate how many employees the health plan hopes accept the offer.
In June, the insurer said it would no longer cover GLP-1 drugs for large group fully insured plans as of Jan. 1. Health plans across the country have adopted similar practices due to the exorbitant cost of GLP-1 drugs in the country.
Jefferson Health outsources 171 support roles
Jefferson Health is trimming 171 jobs come March 10 as it outsources back-office support roles, according to a Philadelphia Inquirer report citing state regulatory documents.
The roles affected are mostly remote and cover areas such as billing, insurance preauthorization and clinical documentation. Some of those being laid off are represented by a union.
The health system did not share what company it has tapped to outsource the roles.
Steward Health Care fails to find buyer for Sharon Regional Medical Center
The Jan. 6 closure of Steward Health Care's Sharon Regional Medical Center in western Pennsylvania brought 848 layoffs, according to two WARN filings from December.
The hospital's fate has been in question for months as for-profit Steward navigated its bankruptcy proceedings. The company had initially been working with Meadville Medical Center to secure a sale but turned to Tenor Health Partners after that deal fell through. However, Steward and Tenor were unable to come up with an agreement before a Jan. 6 deadline.
The pair is reportedly still in talks to close a deal, which could reopen the hospital.