Ochsner Health, the largest health care system in Louisiana, is laying off 770 employees in the state and Mississippi. The layoffs, which represent about 2% of the organization’s workforce, are due to increased labor costs, high inflation, and the end of federal pandemic relief funding.
In an email to employees, Ochsner CEO Pete November said the cuts are “a difficult but necessary decision” that will help the organization “remain financially sustainable.” He said no physicians will be laid off, and that the cuts will focus on management and “non-direct patient care roles.”
Employees who are being laid off will receive full pay and benefits for up to 65 days, depending on their work schedule, in addition to severance packages. Ochsner said it will also provide outplacement services to help employees find new jobs.
The layoffs come at a time when Ochsner is facing financial challenges. The organization lost about $96 million last year, its first unprofitable year in more than a decade. November said the pandemic has “exacerbated” the challenges facing Ochsner, including increased labor costs and high inflation.
Ochsner is not the only health care system facing financial challenges. Hospitals across the country are struggling to cope with rising costs and declining reimbursement rates. In recent months, several major health systems have announced layoffs or other cost-cutting measures.
The layoffs at Ochsner are a sign of the challenges facing the health care industry. As the cost of care continues to rise, hospitals are being forced to make difficult choices about how to stay afloat.
Ochsner Health is a not-for-profit health system based in New Orleans, Louisiana. It is the largest health system in Louisiana and one of the largest in the United States. Ochsner has a network of 42 hospitals, 200+ health facilities, and more than 38,000 employees. The system provides a wide range of services, including inpatient and outpatient care, specialty care, and research.
The health care industry is facing a number of challenges, including rising costs, declining reimbursement rates, and an aging population. These challenges are putting a strain on hospitals and other health care providers. Ochsner is not immune to these challenges, and the layoffs are a sign of the difficult decisions that hospitals are having to make in order to stay afloat.
The layoffs at Ochsner are a reminder of the challenges facing the health care industry. As the cost of care continues to rise, hospitals are being forced to make difficult choices about how to stay afloat. These choices can have a significant impact on patients, employees, and the communities that health systems serve.