Ochsner Health is eliminating 770 positions in an effort to curb financial challenges, the health system announced Thursday.
The positions represent about 2% of Ochsner’s 36,000 staff members across its 47 hospitals and more than 370 health and urgent care centers in Louisiana and Mississippi.
Ochsner Health CEO Pete November pointed to mounting labor costs, a clinician shortage, high inflation and the end of federal COVID-19 funding as reasons for the cuts.
“It is the hardest change we have ever had to make at Ochsner, but one we must to ensure we continue to be a strong organization with the resources to fulfill our purpose and lead the way for clinical excellence and innovation,” November wrote in a message to staff at the New Orleans-based nonprofit health system.
Ochsner reported a $96 million operating loss in fiscal 2022 ended Dec. 31, according to the health system.
The layoffs mostly affect management and non-direct patient care roles. Physician roles will not be cut, and affected employees with active clinical credentials will be offered direct patient care positions, said November, who moved into Ochsner’s top role last year.
Ochsner executives declined interviews Thursday in response to the layoffs.
Health systems nationwide have had to reconsider where they allocate money to keep their finances and operations afloat. Many have chosen to cut non-clinical roles, especially as they continue to struggle to fill clinical positions.
Rapid City, South Dakota-based Monument Health laid off 80 staff members last week, which amounts to about 1.5% of its workforce. Most of the affected employees held corporate service roles such as billing, marketing and human resources. Last year, Renton, Washington-based Providence reduced its seven regional divisions to three, cutting some executive leadership positions in the process.