CLEVELAND — University Hospitals announced it plans to lay off more than 100 administrative employees due to the economic downturn.
The hospital system will also be eliminating over 300 unfilled administrative jobs after experiencing a net operating loss of $184.6 million in the first eight months of 2022.
According to UH, none of the employees or positions provide direct patient care.
"University Hospitals, as well as a large number of other hospitals in the region and across the nation, is facing an economic downturn that began with a resurgence of COVID-19 cases earlier this year and has been compounded by several other factors, such as supply chain issues, record-high inflation and an unprecedented workforce shortage," UH said in a statement.
The hospital system also announced it will be discontinuing its Employee Assitance Program. They released the following statement:
"University Hospitals is part of an outstanding network of Northeast Ohio service organizations which provide assistance to our caregivers and neighbors who experience difficult challenges. UH is fortunate to be in a community that cares about helping those in need.
Considering the breadth and accessibility of these outside services, and consistent with our efforts to reduce expenses, we have decided to discontinue our in-house Employee Assistance Program. Our program will accept inquiries and referrals until Oct. 21, 2022. UH caregivers who are currently receiving support from our in-house counselors will be connected to other trusted agencies and providers in the community for their continuing assistance.
We will also be providing additional guidance to leaders to ensure they are well-equipped to support our caregivers in connecting to internal and community support services."
This move comes less than a month after the hospital system announced it was consolidating delivery services at Geauga Hospital and discontinuing delivery at UH Portage. Over the summer, University Hospitals announced it was closing its Bedford and Richmond hospitals, citing limited resources, staffing challenges, and patient volume.
Ohio Hospital Association Public Affairs Director John Palmer points to three factors leading health care institutions, like University Hospitals, to make tough decisions in order to keep their doors open
The first deals with the devastation from COVID-19. Then a rapid decline in staffing across all industries, including health care, and now rising supply costs due to inflation.
“When you’re hit with a variety of these factors, it’s just creating some difficult economic challenges that these hospitals are facing,” said Palmer.
Just last month, News 5 told you about the announcement at St. Vincent Charity Medical Center and the Sisters of Charity Health System to no longer provide overnight hospital beds or emergency care.
“It’s really just been an unfortunate situation what we’re seeing in some areas of Ohio,” said Palmer.
Now University Hospitals will lay off more than 100 administrative employees due to economic downturn.
“Every hospital is the crown jewel of their local community, and these are just not great economic times many hospitals are facing right now,” said Palmer.
Still, Palmer says what’s happening in Ohio doesn’t compare to the rest of the country.
“A lot of other states are struggling even greater with closures, reductions and service lines,” said Palmer.
Palmer understands these situations can be upsetting for everyone involved. But he praises those healthcare leaders working to make sure access continues.
