CommonSpirit cuts 2,000 jobs

Chicago-based CommonSpirit Health implemented workforce reductions in the fourth quarter of the fiscal year ending June 30, resulting in about 2,000 job cuts. 

The health system announced the cuts, which affected about 2,000 full-time equivalents in ancillary, support and overhead functions, in its most recent financial statement. CommonSpirit has more than 150,000 employees and more than 25,000 physicians and advanced practice clinicians total, as of Sept. 21. 

A spokesperson told Becker's she did not have any additional information to share about the job cuts or the positions affected. This article will be updated if more information becomes available.

The news comes after the health system said in April that it was "taking steps to improve efficiency and effectiveness" amid financial challenges, which may include changes that affect jobs. 

"Like many health care providers, we are experiencing tremendous financial strain caused by a number of factors," the organization said via an emailed statement. "As a result, we are taking steps to improve efficiency and effectiveness that may include changes that impact roles in our divisions and at the national office, as well as reduce our costs where appropriate." 

CommonSpirit, which owns and operates healthcare facilities in 24 states, added at the time that the changes would not affect patient care and would "ensure [they] are better positioned to serve our communities in the future." 

Overall, CommonSpirit posted an operating loss of $1.4 billion for the fiscal year ending June 30, compared to a $1.3 billion loss the year prior, as increasing costs and labor challenges affected its financial picture.

The health system said in its financial statement that workforce reductions implemented in the fourth quarter were partially offset by an increase in clinical staff due to higher volume levels achieved during that quarter. CommonSpirit also said it has reduced its reliance on contract labor and internal premium pay programs. 

"Part of the reduction in contract labor is due to enhanced recruitment and retention efforts. Over the past several months, for example, more registered nurses have joined CommonSpirit than have left the organization," the health system added.

For a breakdown of CommonSpirit's operating revenue by division for the fiscal year, click here.

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