Cleveland-based MetroHealth is laying off 125 employees as part of a broader stabilization effort after a tumultuous few years of financial performance.
The job cuts primarily affect administrative positions, including senior leaders and entry-level hires, the safety-net system announced July 24. The layoffs will not affect patient care, appointments and patient or public safety, MetroHealth said.
The health system is also pausing hiring for non-clinical roles and freezing spending on non-essential travel. Additionally, Christine Alexander-Rager, MD, president and CEO, said she has asked MetroHealth’s Board of Trustees to suspend the at-risk portion of compensation for more than 200 executives this year.
“This has been a difficult day for our MetroHealth family,” Dr. Alexander-Rager said in an email to employees. “We made these decisions in response to significant financial challenges facing our system. Despite your hard work and steady growth in our volumes, MetroHealth’s expenses continue to outpace revenues. And that gap is growing.”
This marks the largest round of layoffs the health system has conducted since 2011, according to a report from NBC affiliate WKYC.
In announcing the cost-cutting measures, MetroHealth cited ongoing financial pressures and uncertainty surrounding future federal funding levels. The health system — which primarily serves patients who are underinsured and those covered by Medicare or Medicaid — has seen its charity care costs surge in recent years. The system said it currently spends more than $1 million per day on charity care.
The cost-cutting comes as hospitals nationwide brace for financial uncertainty tied to the One Big Beautiful Bill Act, which phases in cuts to Medicaid funding and changes to state-directed payment programs over the next decade.
Dr. Alexander-Rager told employees to prepare for additional changes in the months ahead, noting the system will be “right-sizing our footprint, consolidating operations where necessary and expanding access to care. We must align our resources with our priorities.”
MetroHealth is anticipating higher operating losses in 2025 compared to last year. The system closed 2024 with $50 million in operating losses, following a $19.7 million loss in 2023 despite revenue growing to $1.8 billion. The system also launched a cost-cutting plan last year that included reducing travel expenses, scaling back purchased services, and prioritizing patient-facing roles while pausing administrative hiring.
