Philadelphia-based Jefferson Well being will scale back its workforce by 1% within the face of rising monetary pressures.
The cuts will influence between 600 and 700 of its 65,000 staff, the system informed Healthcare Dive on Friday. The corporate has not specified what roles can be impacted.
Jefferson Well being, which operates a well being plan and 32 hospitals throughout Pennsylvania and New Jersey, cited rising headwinds as the rationale for the layoffs.
“Like many organizations in healthcare and better training, we face vital monetary headwinds,” mentioned CEO Dr. Joseph Cacchione in a press release. “To maintain our mission and proceed serving our communities, we should take considerate, strategic actions to align our operations for the long run. Whereas these selections are by no means simple, they’re crucial to make sure Jefferson stays sturdy and in a position to put money into increasing entry to care, advancing innovation and supporting those that depend on us most.”
Fitch Rankings revised Jefferson’s outlook ranking from “steady” to “adverse” earlier this week, citing stress on Jefferson’s operations and its restricted capacity to enhance reimbursement charges from payers.
The system reported a $196 million working loss for its fiscal yr 2025, a lower from its $1.3 million working revenue in 2024.
In an interview with the Philadelphia Enterprise Journal final month, Cacchione blamed the system’s monetary struggles on issues going through its insurance coverage enterprise, together with higher-than-expected utilization amongst its Medicaid inhabitants and rising prices related to GLP-1s. The manager mentioned the well being system must make exhausting selections over the following three years to reverse losses, which might embody layoffs.
Jefferson has already reduce headcount this yr. In March, the well being system let go 171 staff from Jefferson places and about 100 employees from its Lehigh Valley Well being Community services. The techniques merged in 2024.
In 2023, Jefferson collapsed its 5 working divisions into three — chopping an unspecified variety of jobs within the course of — in an effort to chop prices, in accordance with report from the Philadelphia Inquirer.
Suppliers nationwide are shedding employees in response to operational pressures. Windfall, NewYork-Presbyterian Well being System, the College of New Mexico Hospital, Penn Drugs, Yale New Haven Well being, Mass Normal Brigham and Memorial Sloan Kettering are among the many techniques which have made adjustments to their groups in current months, usually citing issues about rising monetary challenges.
