The University of Rochester (N.Y.) Medical Center has implemented a temporary hiring freeze at some of its hospitals amid ongoing financial headwinds and rising labor costs, a spokesperson for the system confirmed to Becker's.
The hiring pause was enacted at University of Rochester Medical Center and Rochester Regional Health earlier this month, but does not apply to physicians or other patient-facing roles.
High-cost contract labor and travel nurses led to a 52% increase in URMC's labor costs since 2016, with the health system reporting a nearly $80 million loss in 2023, NPR affiliate WXXI reported Aug. 29. Last year was the first time URMC posted a negative operating margin in more than 10 years.
"During the first three months of URMC's fiscal year 2024 (July through September 2023), URMC's actual costs were much higher than projected in the budget, largely because costs for temporary workers, which we hoped would be declining, remained very high," CFO Adam Anolik said in an Aug. 2 email to health system leaders. "Temporary worker costs have begun to decline in the past few months, while revenue has been somewhat higher than budgeted, but only enough to break even in FY2024, which ended June 30."
The three-month pause on hiring aims to ensure the first three months of FY 2025 start URMC off on stronger financial footing, "with a safety net of savings," Mr. Anolik said. However, the health system said it continues to aggressively recruit for roles that are essential to fulfilling our clinical, research and educational missions.