University Hospitals lays off 300 workers, including 10% of leadership

Nonprofit health system University Hospitals is set to eliminate more than 300 positions as it works to balance its budget amid rising costs and reimbursement struggles.

The health system said the positions facing removal are largely leadership posts and support jobs, not clinical roles. Patient care is not expected to be impacted.

The cuts come amid struggles over Medicare and Medicaid reimbursement rates, as more than 60% of University Hospitals' patients use government insurance, the health system said. Last year, University Hospitals suffered operating losses totaling $256 million.

Good news came earlier this year when the system’s financial report showed a 9% increase in revenue, attributed to it seeing more patients and improving efficiency. However, that boost has not been enough to staunch the fiscal bleeding.

The 300 job cuts will pare University Hospitals’ leadership team by 10%. Those jobs, and support duties, were largely automated away by the adoption of new IT systems and a new electronic health record that eliminated clerical and administrative work.

The layoffs come after 300 higher-paid nurses received pay cuts earlier this month. The health system said it does not anticipate further job cuts as it works to find a way to boost its revenue.

University hospitals said all employees who face job loss will be notified this week, and their roles will be permanently eliminated on Aug 1.

Chad Van Alstin Health Imaging Health Exec

Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.

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