October 19, 2022
As part of the CEO’s efforts to streamline its leadership structure and streamline operations, Sanford Health is eliminating a number of undisclosed jobs.
In an email to all employees, Bill Gasson said the health system has spent the past two years “bringing renewed focus to our central mission of delivering exceptional health care.” This includes making new investments to advance the care we provide, closing programs outside of our core mission, and reducing administrative costs.
The affected employees work primarily in non-clinical areas, and the staff reduction “will not affect patient or resident care in any way,” Gasson said.
“These changes were born out of our recognition that the patient or resident is at the end of every decision, and that will remain our focus as we move our organization forward.”
Sanford is giving high-impact employees the opportunity to work on other jobs or encouraging them to apply for open positions within the organization, he said.
“We will do everything we can to support the injured colleagues and we want to keep them in the Sanford family,” Gasson said. “We are currently hiring for more than 6,000 positions, primarily in patient-facing roles.”
Looking ahead, he said, “We remain committed to being the region’s leading employer for decades to come, and will focus on conducting our business in ways that advance patient and community health. “This is all part of a planned effort to strengthen our focus on the patients, residents and families we care for.”
Sanford’s move reflects a broader theme in health care.
According to a recent report from the American Hospital Association, “hospitals and health systems face a variety of financial and operational challenges, including historic volume and revenue losses, as well as high costs.” “Combined with inflation and increased input costs, these cost increases have taken a toll on hospital finances, leading to billions in losses and more than 33 percent of hospitals operating at negative margins.”
According to data from the Bureau of Labor Statistics, hospital employment has decreased by about 100,000 from pre-pandemic levels, the AHA report continued.
“At the same time, hospital labor costs per patient in 2021 are up 19.1 percent from pre-pandemic levels in 2019. Therefore, even modest increases in these costs can have a significant impact on a hospital’s overall costs and operating margins.”
