NEW ORLEANS — Ochsner Health, Louisiana's largest hospital system, reportedly plans to lay off 770 employees across its network of 42 hospitals and more than 200 urgent cares and health centers in Louisiana and Mississippi.
The news was first reported by The Times-Picayune | New Orleans Advocate. The layoffs represent 2% of Ochsner's workforce of 38,000, marking the largest layoffs in the hospital system's history.
The cuts will not affect doctors, nurses, and other patient-facing staff, Oschner CEO Pete November said. Management, administrative, and clerical positions will bear the brunt of the layoffs, which will be evenly distributed across the institution’s facilities in both states.
Despite these layoffs, Ochsner is not closing or consolidating any of its facilities, which are predominantly located in New Orleans but also include Baton Rouge, Lafayette, Lake Charles, Shreveport, and the Mississippi Gulf Coast.
The layoffs will not affect hospitals that have affiliation agreements with Ochsner, including St. Tammany Parish Hospital, Slidell Memorial Hospital, Terrebonne General Health System, and Christus Health in Lake Charles.
Employees were notified about the pending layoffs in a company-wide email on Thursday morning. The company is giving laid-off employees 60 days plus a severance package.
The layoffs, anticipated to save between $125 million and $150 million annually, come in response to rising healthcare costs due to the COVID-19 pandemic. It also follows Ochsner’s first unprofitable year in over a decade.
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