The severe financial situation of hospitals and health systems is causing layoffs
In 2022, the hospital and health system landscape will be dominated by dire predictions of impending financial losses, which are frequently partly linked to the rising cost of labor.
Many provider organizations were obliged to turn to contract labor asking fees substantially beyond those seen previous to the pandemic due to a nursing shortage and the winter's omicron surge.
According to systems, such costs are stabilizing month after month. But at a time when high-profit volumes (such surgeries) are still recovering from pandemic interruptions, many hospitals' limited budgets are also having to deal with economy-wide wage and supply cost increases.
The terrible financial situation and labor supply issues facing hospitals are predicted to last at least through the end of the year, if not longer, according to reports from Kaufman Hall and Fitch Ratings.
On both sides of the scale, a lot of health systems, including renowned organizations like Providence, are reducing administrative or leadership positions while attempting to fill gaps in their clinical workforces.
While some layoffs were the consequence of complete site closures, others were accompanied by commitments to assist former employees in relocating to other open and critical positions within the company.