Pennsylvania's hospital sector has seen a wave of workforce reductions in early 2025 as health systems adjust to ongoing financial pressures, operational restructuring and shifting patient care demands.
More than 800 workers' jobs were affected by the Jan. 5 closure of Sharon Regional Hospital, previously operated by Dallas-based Steward Health Care. Tenor Health Partners, a hospital turnaround company, purchased the hospital through bankruptcy proceedings and plans to reopen the hospital as a nonprofit entity, but nothing has been finalized yet.
An exact reopening date depends on hospital inspection and licensure, according to the Pittsburgh Post-Gazette. Tenor Health aims to secure malpractice insurance for physicians, allowing them to see patients in their offices before the hospital opens.
Philadelphia-based Jefferson Health and Allentown, Pa.-based Lehigh Valley Health Network merged into a 32-hospital system on Aug. 1, with some workforce reductions following at the start of 2025.
Jefferson is outsourcing some back-office functions, a move that will affect 171 workers in non-patient-facing administrative roles, according to The Philadelphia Inquirer. The affected employees work in billing, insurance preauthorization and clinical documentation, and most of them work remotely.
The health system said the move aims to drive greater efficiency but did not respond to Becker's questions about the outsourcing.
Shortly after Jefferson confirmed the outsourcing, Lehigh Valley Health Network announced that it is laying off about 100 workers. A spokesperson did not specify which positions were affected, but told Becker's the health system has made "some changes in areas that provide outpatient care to align the staffing structure with community needs."
The most recent Pennsylvania system to announce workforce reductions is Bryn Mawr-based Main Line Health, which eliminated about 200 administrative and management positions. The layoffs, which are projected to save the system more than $30 million annually, primarily affect administrative support areas such as information technology, finance, human resources, revenue cycle, and accounting.
These workforce cuts reflect broader industry trends reshaping how hospitals and health systems manage administrative functions and staffing. Despite gradual improvements in hospital margins in 2024, many organizations continue seeking cost-cutting opportunities, including workforce reductions, to streamline operations and ensure long-term sustainability.