BHSH System cuts 400 positions amid financial pressures

BHSH System has cut about 400 management and nonpatient/health plan member-facing roles from its 64,000-member workforce.

The 22-hospital organization — formed by the February merger of Grand Rapids, Mich.-based Spectrum Health with Southfield, Mich.-based Beaumont Health — announced the cuts in a statement shared with Becker's, citing financial pressures.

"Spectrum Health and Beaumont Health came together as a new health system for Michigan to build a future where health is simple, affordable, equitable and exceptional," the statement reads. "Our health system, like others around the nation, is facing significant financial pressures from historic inflation, rising pharmaceutical and labor costs, COVID 19, expiration of CARES Act funding and reimbursement not proportional with expenses."

BHSH System also said the February merger places the organization in a stronger position to face these pressures, while ensuring quality care for the future.

"Since the beginning of the year, we have recruited around 10,000 people, predominately into open roles directly serving our patients and health plan members," the system's statement said. "We have also made the difficult decision to eliminate about 400 management and nonpatient/health plan member-facing roles from our 64,000 team members. We are grateful for the contributions and years of dedicated service provided by our impacted team members and are working to help them find employment within our health system and elsewhere. We remain deeply committed to caring for our team members and our community."

In August, MiBiz reported that BHSH System, across all business units, recorded $63.5 million in net operating income for the first half of 2022 on $6.58 billion in total operating revenue, in addition to investment losses.

Hospitals across the U.S. are facing financial struggles. On Aug. 29, Kaufman Hall released a new report that showed hospitals are experiencing some of the worst margins since the beginning of the COVID-19 pandemic. 

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