Jackson, Wyo.-based St. John’s Health has decided to not refill positions once employees exit to help reduce expenses like contract labor and avoid future layoffs, Jackson Hole News & Guide reported June. 10.
“There may be opportunities in the future that look different,” St. John’s Health CEO Jeff Sollis told the publication. “But that’s the primary strategy right now — to really look at attrition and find savings.”
The independent health system comprises a hospital and multiple medical clinics. It has more than 850 employees, according to its website.
St. John’s Health is redistributing duties to current employees instead of backfilling specific roles. Mr. Sollis said Becca Radley, director of surgical services for the system, also oversees supply chain now, following the exit of the former supply chain director.
System CFO Mitch Watson said in an email to Jackson Hole News that St. John’s Health could still make adjustments to hours and staffing, but it has not discussed overtime hours or freezing employee headcount.
Since 2022, the system’s deficit has grown from $2.1 million to $19.5 million in 2025, with its deficit expected to shrink to around $14 million in 2026. The projected deficit is an improvement on the $18.9 million originally budgeted on a planned $222 million in spending against $203.1 million in revenue.
Labor remains St. John’s core challenge, with the system spending just over 60% of net revenue on salaries, wages and benefits through April, against an industry standard of 50% or less and a budget target of 59%.
“We’re trying to chop this up in a multiple-year financial recovery plan,” Mr. Sollis said. “We hope to be there by 2028, 2029, 2030 at the latest.”
The system has also closed clinics and shuttered its inpatient rehabilitation facility to cut costs, resulting in 11 layoffs and $1.7 million in savings. Another $3.2 million was trimmed through non-labor expenses such as off-site office leases and software licenses. A “small number” of roles in marketing, finance and IT were also eliminated in a restructuring.
A spokesperson for St. John’s Health said in a June 10 statement shared with Becker’s that the system does not currently have plans to close additional service lines, though it has already made several adjustments.
“We are watching all our indicators, including labor utilization, on a monthly basis to ensure we are trending in the right direction,” the spokesperson said. “We aren’t expecting to achieve our goal of reducing the operating loss overnight; we know we have continued work to do over the next 24 to 36 months. We will stay on course and be ready to adjust if it’s needed.”
At the same time, the system said it is expanding where patient demand warrants.
“For instance, we’ve recently added specialists in OB-GYN and cardiology,” the spokesperson said. “We’re also hoping to expand oncology care in partnership with the St. John’s Health Foundation, which has plans to fully fund the expansion, including the addition of radiation therapy, through community philanthropy.”
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