Virginia Mason Franciscan Health is eliminating more than 100 jobs in virtual care services, according to a WARN notice.
The Tacoma, Wash.-based health system filed the notice with the state on June 5, indicating layoffs are slated to begin July 28, affecting 116 workers.
A spokesperson told Becker’s the WARN notice reflects one employee segment that met regulatory reporting requirements.
It is part of a broader transition of several virtual services and administrative functions, according to a statement shared with Becker’s from Chad Melton, interim president of the VMFH Puget Sound Market, which cites financial strain.
“Virginia Mason Franciscan Health is taking critical but necessary steps to remain financially sustainable so we can continue delivering high-quality care to the communities we serve,” Mr. Melton said.
“Like healthcare systems across the country, we are facing significant financial pressures — including rising labor and supply costs, increasing claim denials and chronic underpayment from government programs. These challenges have only intensified in Washington state, where a new budget introduces new taxes that directly affect hospitals and reduces reimbursement, most notably by capping payments for care provided to state and school employees. These changes are expected to cost VMFH an additional $30 million each year.”
To protect care access long term, he said the system is “realigning resources and improving operational efficiency,” including “transitioning several virtual services and administrative functions, which will impact approximately 200 team members.”
Mr. Melton added that affected employees are receiving personalized support, including placement assistance and access to open roles within VMFH.
Megan Frasier, a cardiac monitor tech with the system, said she was told jobs are being outsourced to another region, NBC affiliate KING 5 reported June 6.
“These are difficult and necessary decisions to ensure we can continue meeting the needs of our patients — today and into the future,” Mr. Melton said.
VMFH, part of Chicago-based CommonSpirit Health, is a 10-hospital system with more than 18,000 team members and staff, according to its website.
