CHI Mercy Health-Mercy Medical Center and Centennial Medical Group in Roseburg, Ore., is eliminating 18 jobs, mostly in leadership support, according to local news outlet KLCC.
The 174-bed hospital, part of CommonSpirit, said the workforce cuts were a difficult but necessary decision amid ongoing financial pressures.
“The financial pressures and workforce challenges facing health systems nationwide persist and continue to impact hospitals like ours,” Russell Woolley, CEO and president of CHI Mercy Health-Northwest Region, said in a statement shared with Becker’s. “As a result, we are taking steps to improve efficiency and effectiveness, as well as reduce our costs to ensure we remain a strong and stable health care system for the communities we serve.”
The hospital said it is working with affected employees on a transition plan that includes applying for other open positions within the health system.
“Fortunately, many of the necessary changes are being addressed with natural employee attrition, improved scheduling efficiencies, and reducing contract services,” Mr. Woolley said.
CommonSpirit’s Chattanooga, Tenn.-based CHI Memorial Hospital is also laying off employees and reassigning others to cut costs amid persistent financial challenges, according to the Times Free Press.
The health system said fewer than 50 workers will be laid off and added that many can apply for other hospital jobs. Karen Long, a spokesperson for the hospital, told the Times Free Press several factors sparked the job cuts, including the hospital’s separation from BlueCross BlueShield of Tennessee in June.
She also said the system is working through increased labor costs, inflation and low reimbursement.
The timeline for layoffs at either hospital could not be confirmed. CommonSpirit did not respond to Becker’s inquiries about whether layoffs are planned at other hospitals.
CommonSpirit reported operating losses of $365 million and $411 million during the three- and nine-month periods ending March 31. While the health system has seen some earnings improvement, continued salary and supply cost inflation offset gains. Revenue was up 9.5% year over year for the quarter while expenses were up 7.8% and labor costs soared 8.3%.
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
