Dive Brief:
- A new study has found that between February 2013 to February 2014, hospitals in Pennsylvania cut 3,900 jobs from their roster, affected in part by reduced payments.
- The study, which was done by the Pennsylvania Department of Labor & Industry and The Hospital & Healthsystem Association of Pennsylvania, concluded that many of the state's hospitals plan to make more cuts to their staff roster in the future.
- The survey found that 67% of hospitals plan to freeze hiring, 49% plan to lay off current staff, 51% will delay or cancel needed renovations or building projects and 41% will cut health care services.
Dive Insight:
With hospitals across the US struggling with reduced reimbursements, it's not surprising that Pennsylvania hospitals are responding with layoffs and hiring freezes. At this point, it seems certain that other states will see waves of layoffs as well, especially among vulnerable rural hospitals. Unfortunately, layoffs alone not be enough to save the credit rating or even the life of a struggling hospital. It's little wonder that many hospitals are desperate to find partners or even to be acquired—in this environment it may be their best choice.