Louisiana’s Biggest Hospital System Lays Off 770 People

The layoffs are the largest in the health care operator’s history and represents 2 percent of of its 38,000-person workforce, after it saw its first negative quarterly results in over a decade.

The firm is one of the 36 American health care operators to layoff staff since the beginning of the year, on top of the 35 providers which already slashed their workforce in the latter half of 2022, according to industry data.

The layoffs at Ochsner are happening at the same time as a labor shortage for nurses and other medical staff.

At least 800 nursing positions remain unfilled, which has led to an increase in the cost of providing patient care, according to November.

“We recognize this will be difficult on people impacted and people here, and we will do the best we can to support them,” November said.

Ochsner is giving laid-off employees over 60 days of benefits and pay, plus a severance package.

“Each impacted full and part-time employee will continue to receive full pay and benefits for up to 65 days, depending on their work schedule, in addition to severance packages for full-time and part-time employees,” said the CEO.

The CEO said that employees impacted by the cutbacks would immediately receive a calendar appointment to assist them in finding new employment.

“We will also offer career support, wellness resources, and details on how to apply for other job opportunities within Ochsner.”

Hospital System Expenses Rise Nationwide

The hospital operator will not close or consolidate any of its facilities, which are concentrated in New Orleans region, including Baton Rouge, Lafayette, Lake Charles, Shreveport, and the Mississippi Gulf Coast.

Overall hospital labor costs have risen 9 percent after the federal government stopped covering the pay of travel nurses, which have skyrocketed by 80 percent due to high demand during the pandemic.

From 2019 to 2022, the Louisiana company saw its bills for medical supplies, equipment, and drugs increased by 10 percent.

“Health care providers across the country have experienced increased labor costs, a shortage of patient care clinicians, high inflation, and the end of pandemic-relief funding from the government,” November wrote.