Health systems face IT labors shortages, yet some are eliminating jobs

Hospital and health system CIOs told Becker's that IT staffing remains a major challenge for their organizations as they are in a global competition with other companies for talent, yet some of them have been forced to lay off their IT employees this year due to financial and operational challenges. 

In June, Danville, Pa.-based Geisinger laid off 47 employees from its IT department. 

The health system cited the reduction as part of a restructuring plan to offset high labor and supply costs.

MultiCare Health System, a 12-hospital organization based in Tacoma, Wash., also conducted layoffs in June. 

The health system cut 229 employees, or about 1 percent of its 23,000 staff members, also part of cost-cutting efforts. 

The layoffs affected multiple departments, including IT.

But these layoffs come as healthcare organizations are facing IT labor shortages. 

According to Brad Reimer, CIO of Sioux Falls, S.D.-based Sanford Health, hospital and health system IT departments are lacking talent in cybersecurity, digital, cloud and data. 

"The demand for these roles is increasing at a pace faster than the rate of new college graduates entering the workforce," he told Becker's

Recruiting for IT in the healthcare industry has also been especially hard as the sector competes with Big Tech companies for a limited number of candidates.

"We're now competing for IT talent with every other company that has a technology need  across the globe," Mr. Reimer said.

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