Cleveland-based University Hospitals announced efforts to reduce system expenses by $100 million Oct. 12, including the elimination of 326 vacant jobs and layoffs affecting 117 administrative employees.
None of the employees affected by job cuts or layoffs provide direct patient care, according to a statement issued to Becker’s by UH. The workforce reduction comes as the 21-hospital system faces a net operating loss of $184.6 million from the first eight months of 2022.
Workforce shortages were one of several reasons the health system cited for the job cuts, along with an economic downturn that began with the surge of COVID-19 cases in early 2022, supply chain complications and high inflation. UH also noted "shifting demographics in Northeast Ohio," resulting in a higher percentage of patients covered by Medicare and Medicaid — federal reimbursement that has not kept pace with increased costs of care.
"Although these actions are difficult, they will make UH stronger now and for decades to come in our continuing service to the community," the health system said. Employees affected by the reduction will receive a severance package in measure with their positions and tenure. UH noted it continues to have job openings in clinical areas, and encourages healthcare providers to apply.
The cost reduction initiative follows service reductions at two UH hospitals — UH Bedford (Ohio) Medical Center and UH Richmond Medical Center in Richmond Heights, Ohio. In July, the health system cited staffing shortages as the primary reason for the end of inpatient, surgical and emergency services at UH Bedford and UH Richmond, effective Aug. 12. The services were rerouted to area UH hospitals.