Memorial Hermann to cut additional 350 jobs

Houston-based Memorial Hermann Health System will lay off an additional 350 employees, or less than 2 percent of its total workforce of more than 25,000.

Health system officials attributed the decision to the changing healthcare climate and the local economy.

"This is an unprecedented time in healthcare. The past year has ushered in a tremendous amount of change in the industry across the nation, and Houston is no exception. We continue to face an uncertain healthcare environment with escalating costs and declining reimbursements. In addition, we are impacted by a softened local economy. Together, these reasons have driven Memorial Hermann to make proactive adjustments to position itself for continued success and financial sustainability," a spokesperson said in an emailed statement to Becker's Hospital Review.

Memorial Hermann did not detail which positions would be cut, except to say the workforce reduction will not affect direct patient care.

Officials said the layoffs are "only one part of an overall strategy to adapt and prosper under an uncertain healthcare environment. This means reformatting our cost structure– being more cost-efficient than in the past and consumer-focused than ever before."

They added while the layoffs were not an easy decision, they "will ensure the organization is positioned to withstand the challenges we expect to face in the coming years."

The recent layoffs are in addition to the 112 employees the health system laid off in January. Those layoffs mostly included leadership positions, according to the Houston Chronicle.

 

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