Adventist Health will restructure, lay off employees in effort to cut costs

Adventist Health is consolidating its seven care networks into five and laying off administrative staff to cut costs and consolidate operations.

The faith-based nonprofit said its five networks would be Northern California, Central California, Southern California, Oregon and Hawaii. Chief Operating Officer Todd Hoffins said in a news release Wednesday that the reorganization will reduce overhead costs, strengthen the operating structure and help broaden the system’s geographic footprint.

Roseville, California-based Adventist, which has 23 hospitals and more than 350 clinics, recently entered into an agreement for Mid-Columbia Medical Center to join the Oregon State Network, pending regulatory and state approval .

Adventist is also laying off 59 administrative employees, the system said in a Worker Adjustment and Retraining Notification Act notice filed in California. Wednesday. The layoffs began this month and will continue through April, affecting positions ranging from administrative directors to project managers. According to the notice, the employees were given 60 days’ written notice for the pending deductions.

Adventist estimated that the reorganization would save about $100 million by cutting those salaries and other costs but did not provide additional details. A spokeswoman declined a request for more information about the leadership change.

In July 2022, Adventist submitted a WARN notice regarding its plans to lay off 52 employees.

Adventist reported a net loss of $637 million in the first nine months of 2022, according to its latest financial information. Revenue for that time period rose 4.4% year-over-year to $3.94 billion. Expenses increased 7.4% to $4.19 billion.

It is the latest in a string of health systems streamlining operations in response to a challenging economic environment.

Last year, based in Renton, Washington Providence condensed its seven territorial divisions into three. and cut executive positions. The nonprofit system attributed the change to financial challenges including labor shortages, inflation, supply chain issues and limited insurance reimbursement. Also in 2022, Nashville, Tennessee-based HCA Healthcare reshuffles its corporate structureAdding a third regional executive team to oversee the five divisions from this year, unlike other health systems that cut management levels.

In January, Jefferson Health in Philadelphia announced it will consolidate five of its divisions three in an attempt to streamline operations, citing labor challenges and inflationary pressures.

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