Penn Highlands announces layoffs as hospitals face financial losses
Amid financial challenges and increasing costs, Penn Highlands Healthcare is laying off about 36 positions at Penn Highlands Mon Valley and Penn Highlands Connellsville.
“To help bring these two hospitals to financial stability and position them for long-term strength and future growth, we had to make an extremely difficult decision and today we are announcing a staff restructuring, the Clearfield County-based health-care system said in a statement released Wednesday.
Twenty-six of the layoffs are in leadership and non-clinical service positions, and those who were laid off can apply for other jobs within the health system.
“The post-pandemic years have been very difficult for health systems across the United States – especially in rural communities. Hospitals continue to struggle largely due to staffing and recruitment issues, inadequate reimbursements, soaring inflation and record increases in the cost of medication and equipment,” Penn Highlands said in the statement.
Before laying off employees, the health system attempted to find alternatives to reduce operating losses, including reducing positions through attrition, renegotiating contracts, restructuring management, and consolidating office locations.
But Penn Highlands Mon Valley and Connellsville “continued to experience significant deficits,” officials said.
In fiscal year 2024, the system reported a $16 million operating loss, and as of March 31, operating expenses have increased 13% from last year.
Penn Highlands Mon Valley and Connellsville face challenges with recruitment and retention, and have initiatives aimed at recruiting clinical positions and providers.
Penn Highlands Healthcare, formed in 2011, includes nine hospitals, pharmacies, surgery centers, senior living facilities, and an ambulance service, and has locations in 26 counties. It offers a wide range of care and treatments with specialty units for cancer, cardiovascular/thoracic, neurosurgery, pulmonology, neonatal and high-risk pregnancy patients.
Penn Highlands Mon Valley, a 200-bed facility, and Connellsville, a 64-bed hospital, employ more than 1,250 people. The two hospitals have been serving their communities for more than 100 years. Mon Valley joined PHH in 2021, with PHH Connellsville joining six months later, in 2022.
The two hospitals provide an economic impact of nearly $319 million across the region, according to PHH.
“We plan to continue providing care for generations to come,” the hospital statement read.