Pennsylvania health system cuts 10% of workforce amid pandemic losses

Alia Paavola - Print  | 

As part of a restructuring effort to cut pandemic-related losses, State College, Pa.-based Mount Nittany Health System plans to lay off 10 percent of its workforce, according to local news station WTAJ.

The health system said it is making the personnel reduction because it is expecting a $70 million revenue shortfall in fiscal year 2020, which ends June 30.  

In addition to the layoffs, which will affect about 250 employees, Mount Nittany Health said it will cut executive compensation by 10 percent and cut spending for contracted services.

"Like most health systems across the country, we are experiencing a significant impact from the pandemic," Kathleen Rhine, Mount Nittany Health president and CEO, told WTAJ. "The actions we are taking ensure that we can serve the community well today and remain strong to grow into the future."

Mount Nittany Health said it will extend separation support to affected employees. 

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