Adventist Health’s back-office services restructuring of 750 employees will affect around 300 corporate roles at its Roseville, Calif., headquarters, according to an Aug. 20 news release shared with Becker’s.
On Aug. 6, the health system launched multiple financial sustainability initiatives, including outsourcing certain business functions and requiring a return to office for corporate employees in 2026. It also said vendor partners will take over finance, human resources, talent acquisition, supply chain IT and accounts payable services to help with growth, cut costs and improve efficiency; Adventist will maintain oversight, however.
Adventist Health pointed to policy changes brought on by the recently passed One Big Beautiful Bill Act as one of the reasons for restructuring.
“The strategic initiatives are focused on administrative cost reduction as the nonprofit dedicates all available resources to direct patient care,” the Aug. 20 news release said. “The need for clear action is driven by anticipated cuts to Medicaid tied to federal policy decisions, rising labor and supply expenses, as well as insurers’ inability to keep pace with the cost of care.”
Some of the affected employees will move to new roles at Adventist Health or with its vendor partners. The health system also plans to offer “robust resources” for employees impacted by the return to office and cost reduction initiatives through emotional and spiritual support, job search strategies and career transition workshops.
“While changes like these bring a significant impact to our workforce, they are a necessary response to the challenges facing our organization and industry,” Kerry Heinrich, president and CEO of Adventist Health, said in the release. “We have a responsibility to our patients to ensure our long-term financial sustainability and to invest in high quality care delivered with deep expertise, a modern infrastructure, and a more connected workforce.”
Adventist Health is a nonprofit system that comprises 27 acute care facilities, more than 440 care sites and more than 38,000 employees.
