Louisiana’s largest hospital system lays off 800 staff — as Biden cuts funding for facilities at the end of the Covid pandemic
Louisiana’s largest hospital system has laid off nearly 800 of its staff amid rising healthcare labor costs after the Covid pandemic comes to an end.
Ochsner Health announced today that it is “cutting 770 positions” — about 2 percent of its total workforce — in “the hardest change we’ve ever had to make.”
It comes after extra money for government healthcare systems was cut after Biden ended the pandemic on May 11.
Hospitals have been receiving funding since March 2020 to help with staff costs and other costs.
The key roles cut from Ochsner Health are management roles and non-direct patient care, it said.
Pete November, CEO of Ochsner Health, said in a statement: ‘This is not a decision that our executive leadership team is taking lightly or that we have ever wanted to make’
The health team stated: ‘No physician will be affected by this reduction, and all affected employees with active clinical references will be offered direct patient care duties.’
The hospital system revealed it was facing “financial and staffing challenges.”
A shortage of patient clinicians, high inflation and the end of government pandemic relief funding also contributed to Ochsner Health’s decision.
CEO Pete November said in a rack“This is not a decision that our executive leadership team takes lightly or that we ever wanted to make.
It’s the hardest change we’ve ever had to make at Ochsner, but we need to make sure we remain a strong organization with the resources to achieve our goal and lead the way in clinical excellence and innovation.”
Last week, World Health Organization (WHO) leaders announced that Covid is no longer a global emergency — a symbolic moment that the pandemic is drawing to a close.
Tedros Adhanom Ghebreyesus, director-general of the UN health organization, said on Friday: “It is with great hope that I declare Covid a global health emergency.”
However, he stopped short of declaring the pandemic, warning that the virus still poses a threat in developing countries that have not had access to vaccines.
It comes as the latest pandemic restrictions in the US will end today, months after President Joe Biden declared the pandemic “over” for America.
As of March 2020, Congress established the $178 billion Provider Relief Fund to support hospitals and other healthcare providers to offset financial losses and unexpected expenses during the pandemic.
This was designed to help healthcare providers prevent, prepare for and respond to Covid, as well as make up for lost income due to the pandemic.
In addition, $8.5 billion in American Rescue Plan rural funds were distributed to hospitals and other service providers serving patients in rural areas.
According to Fierce health caredischarges from hospitals and health systems in 2023 are already close to totals for the full year in 2022.