Inflation contributed to Ochsner layoffs, Louisiana Hospital Association CEO says

After New Orleans-based Ochsner Health cut 770 jobs, or 2 percent of its workforce, Louisiana Hospital Association CEO Paul Salles is mainly laying the blame on inflation, Louisiana Radio Network reported May 15.

Mr. Salles said he would not be surprised to see other Louisiana hospitals conduct layoffs, since reimbursement rates from both government and commercial payers are not keeping pace with inflation. The Ochsner job cuts targeted management and non-direct patient care roles.

"Both on the labor side and related to non-labor issues like supplies, drugs and other types of expenses," Mr. Salles said on inflation.

The news comes as Louisiana legislators debate a measure that would create a healthcare workforce fund using surplus state funds.

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