Texas Children’s Hospital To Lay Off 1,000 Workers, 5% Of Workforce
In a decision that has sent shockwaves through the healthcare community, Texas Children’s Hospital, the nation’s largest pediatric hospitals, has announced plans to lay off approximately 1,000 employees, representing 5% of its workforce.
Despite being a non-profit organization, the renowned Houston-based hospital, which is affiliated with Baylor College of Medicine, has found itself in a financially challenging situation. Full details about the financial impact have not been disclosed, here’s what has been announced.
The hospital, which operates 120 locations across Texas and globally with a primary presence in Houston, employs approximately 20,000 people, according to Linda Aldred, executive vice president and chief human resources officer.
Houston Children’s Hospital has attributed the need for layoffs to a combination of factors:
- Lower patient volumes: The hospital has experienced a decline in the number of patients seeking care.
- Financial challenges: These include rising labor costs and lower-than-expected revenue.
- Delay in opening new Austin campus: The two-week delay in the opening of their new Austin campus, that cost $450 million, contributed to significant financial losses.
These combined factors have resulted in an operating income loss of nearly $200 million through the first six months of the current fiscal year.
In a statement to the Chronicle, Linda Aldred said, “This has been so challenging and so difficult for us to get here. We have been really thoughtful about it and we do not plan to have additional job cuts or job eliminations.” According to Aldred, some employees will be eligible to apply for different jobs.
The layoffs will impact various departments and roles across Texas Children’s Hospital’s multiple locations throughout Texas. However, the specific details of which positions and departments will be affected have not been disclosed.
As the healthcare industry continues to evolve and adapt to changing economic realities, institutions like Texas Children’s Hospital will undoubtedly face ongoing challenges. Nurse.org will continue to update this article.
