Virginia Mason lays off almost 400 employees

Tacoma, Wash.-based Virginia Mason Franciscan Health has laid off nearly 400 employees, most of whom are in non-patient-facing roles, The Seattle Times reported April 6.

The job cuts affected less than 2 percent of the health system's 19,000-plus workforce.

"Like many healthcare providers in the Pacific Northwest, we are experiencing tremendous financial strain caused by a number of factors, including lasting impacts from the COVID-19 pandemic, inflation and labor shortages," Kelly Campbell, vice president of marketing and communications at Virginia Mason, said in a statement shared with Becker's. "As a result, we are taking steps to improve efficiency and effectiveness, as well as reduce our costs. These decisions are not made lightly but are necessary for our continued stability and future growth."

Affected employees will be eligible for career transition assistance, extended benefits and severance programs.

Virginia Mason, which includes 10 hospitals and nearly 300 care sites, said it is focused on improving efficiencies and reducing costs in response to financial headwinds.

In 2022, Washington hospitals reported a total net loss of more than $2.7 billion, compared to a $1.2 billion loss in 2021, while their net operating loss was $2.1 billion, up from $742 million in 2021. 

"We're very concerned that access to this specialized care, the highest level of care, and in many cases, the life-saving care is threatened by unsustainable financial losses as hospitals are resorting to extraordinary means to close the gaps in their budgets," Cassie Sauer, president and CEO of the Washington State Hospital Association, said in a March 21 media briefing.


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