Erlanger lays off 93 nonclinical employees

Chattanooga, Tenn.-based Erlanger Health System has cut 93 nonclinical positions to help offset financial damage from the COVID-19 pandemic, according to the Chattanooga Times Free Press.

The layoffs come after the health system cut 11 leadership positions June 12, including the CEO of Erlanger Western Carolina Hospital in Murphy, N.C., and made staff and pay cuts in March.

Erlanger made the latest round of layoffs June 19, the Times Free Press reports, citing an internal memo to staff.

"As the region's only public safety-net hospital system, Erlanger has borne the full brunt and financial impact of this pandemic in a way other health systems have not," the memo states, according to the newspaper.

The memo says Erlanger's "primary goal with these reductions is to reduce administrative cost without negatively impacting patient care."

Like other U.S. health systems, Erlanger has lost significant revenue from suspending elective procedures. Its officials estimated the health system's net patient revenue declined by $35 million in April due to temporarily suspending those procedures, lower patient volume and expenses related to COVID-19, according to the report.

Erlanger officials said the health system has about 100 nonclinical managers and directors after its latest layoffs. Overall, the health system has more than 6,900 employees and is Chattanooga's largest employer.


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