Providence, a 51-hospital health system based in Renton, Wash., said in a news release June 12 that it implemented a restructuring plan that will affect 600 full-time-equivalent positions across seven states.
According to the Everett Daily Herald, layoff notices were issued to more than 100 certified nursing assistants at Providence Regional Medical Center Everett (Wash.) on June 11 as part of Providence’s larger restructuring plan. Mila Sprouse, EdD, MSN, RN, Providence’s North Puget Sound chief nursing officer, told the publication those layoffs will take effect July 11.
The health system employs a total of 125,000 people. Providence said, where possible, affected individuals are being redeployed into other roles at the organization, which has more than 5,000 open positions. The health system is also offering transitional resources to those affected.
Affected roles are primarily in nonclinical, administrative functions, though some patient-care roles are also included, Providence added.
A Providence spokesperson told Becker’s that leadership roles were included as a part of the health system’s broader restructure.
“We do not take decisions like this lightly and recognize that behind every role is a person, colleague, friend and caregiver whose contributions have helped carry out our mission,” Providence COO Darryl Elmouchi, MD, said in a statement. “These difficult but necessary steps are part of a comprehensive approach to financial sustainability that will enable our family of organizations to better reinvest in and revitalize the front lines of care, including the people, programs, equipment and facilities needed to serve our communities.”
News of the restructure comes as Providence President and CEO Erik Wexler recently detailed the “perfect storm” facing healthcare — including proposed federal cuts to Medicare and Medicaid, ongoing denials and delayed payments from commercial insurers, higher labor costs, inflation and potential tariffs.
Amid these pressures, Providence has taken several actions to ensure financial sustainability, including placing a freeze on nonclinical hiring, reorganizing top-level leadership and restricting nonessential travel, such as conference attendance.
Portland, Ore.-based Providence Health Plan, a division of Providence, also has laid off 4% of its workforce amid financial headwinds.
