Ochsner Health layoffs: Cuts 2% of workforce

Ochsner Health is eliminating 770 positions immediately in an effort to curb financial challenges, the health system announced Thursday.

The positions represent about 2% of the 36,000 staff members at Ochsner’s 47 hospitals and more than 370 health and urgent care centers in Louisiana and Mississippi. Thursday is the last day of work for the affected employees.

Ochsner Health CEO Pete November pointed to rising labor costs, a physician shortage, high inflation and the end of federal COVID-19 funding as reasons for the cuts.

The layoffs mostly affect management and non-direct patient care roles. Physician roles will not be cut, and direct patient care positions will be offered to affected employees with active clinical credentials, November said. who moved into Ochsner’s top role last year,

‚ÄúThis is by far the most difficult change we have had to make at Ochsner, but we must ensure that we remain a strong organization with the resources to deliver on our purpose and drive clinical excellence and innovation. Pave the way,” November wrote in a message to employees at the New Orleans-based nonprofit health system.

Ochsner reported an operating loss of $96 million in 2022, according to the health system. Annual revenue grew 8.18% to $6.39 billion. Expenses increased by 12.45% to approximately $6.49 billion. Last year, 46% of its total expenditure went to salaries and wages.

A spokeswoman said the reductions represent the first systemic reduction in force for Ochsner, and no additional systemic reductions are planned. The officials declined interview requests.

nationwide health systems have had to reconsider where they allocate money To keep their finances and operations afloat. Many have chosen to cut back on non-clinical roles, especially as they continue to struggle to fill clinical positions.

Located in Rapid City, South Dakota memorial health Last week laid off 80 staff members, which is about 1.5% of its workforce. Most of the affected employees held corporate service roles such as billing, marketing and human resources. Last year, based in Renton, Washington frugality its seven regional divisions were reduced to three, some were cut executive leadership positions in the process.

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