(WJW) — University Hospitals announced Wednesday it intends to lay off 117 administrative employees and eliminate 326 unfilled administrative positions, citing an economic downturn that has affected hospitals across the nation.
None of the laid-off workers were involved in direct patient care, according to a news release from the hospital system. They are expected to receive severance packages.
The downturn began with a “resurgence” of COVID-19 cases earlier this year and was exacerbated by supply chain disruptions, record-high inflation and an “unprecedented” workforce shortage, according to the release. Also, in northeast Ohio, more patients are now being federally insured through Medicare and Medicaid, “which have not kept pace with the rising costs of care,” reads the release.
University Hospitals reported a net operating loss of $184.6 million in the first eight months of 2022, according to the release. The system is now curtailing administrative costs and will also seek to lower non-labor expenses, for a total savings of more than $100 million.
“We reassure patients and the community that no employees delivering care are affected and the quality of care will continue to meet our high standards,” reads the statement.
“Although these actions are difficult, they will make UH stronger and for decades to come in our continuing service to the community.”
A number of clinical positions are currently available, according to the hospital system, and caregivers are encouraged to apply.