DuBois, Pa.-based Penn Highlands Healthcare laid off about 36 positions across two hospitals, citing continuing post-COVID-19 financial challenges, the Pittsburgh Post-Gazette reported June 18.
The cuts affect Penn Highlands Connellsville (Pa.) and Penn Highlands Mon Valley in Monongahela, Pa., according to the report. Twenty-six of the employees laid off were in nonclinical roles.
The nine-hospital health system said in a statement that the post-pandemic years have been especially challenging for rural hospitals, according to the report. It added that hospitals struggle “largely due to staffing and recruitment issues, inadequate reimbursements, soaring inflation and record increases in the cost of medications and equipment.”
Through the first three quarters of fiscal 2025, Penn Highlands recorded an operating loss of $24.1 million (-3.1% operating margin), compared to an operating loss of $16.5 million (-2.4% margin) during the same period last year, according to its May 30 financial report. The system attributed the rising operating loss to its State College, Pa., hospital that opened in July, opportunities in revenue cycle, and ongoing challenges with staffing that resulted in rate increases, premiums, agency and locum expenses.
Investment in Penn Highlands State College Hospital represented a $12.5 million operating loss through the nine months ended March 31.
“Our growth strategies are centered on the State College campus and new program offerings such as specialty pharmacy,” the system said in the financial report.
