US-based healthcare system University Hospitals (UH) is reportedly planning to lay off more than 300 employees as part of an organisational restructuring effort.
UH said the decision was made in response to existing financial difficulties being exacerbated by rising costs.
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According to News 5 Cleveland, the job cuts will include a reduction of more than 10% in the company’s leadership structure.
Most of the roles being cut will be non-clinical, minimising the impact on patient care, while all affected employees will receive severance packages.
UH CEO Cliff Megerian said: “These decisions are never easy. The important thing is that we make these strategic moves now so we can continue to serve our community and fulfil our mission for decades to come.
“We are thankful for our hometown team that delivers lifesaving care to our neighbours, friends and relatives each and every day.”
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By GlobalDataThe restructuring at UH comes in response to the broader financial pressures faced by hospitals across the US, including labour shortages, inflation and low rates of Medicare reimbursement.
UH said it had not been able to counterbalance rising costs despite a 9% year-over-year revenue increase, which it attributed to factors such as improved patient access and the implementation of a new electronic health records system.
UH’s current plan has been in development for the past three years and aims to consolidate services.
Founded in 1866, UH operates an integrated network of 21 hospitals, more than 50 health centres and outpatient sites, and more than 200 physician offices across northern Ohio.
The health system runs several clinical and research programmes, currently conducting more than 3,200 active clinical trials and studies.
It also collaborates with the Harrington Discovery Institute to promote the development of medications for unmet needs.
Last week, University Hospitals began using aiOS, an artificial intelligence platform developed by Aidoc, across its hospitals and outpatient facilities.
