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Bozeman Health lays off 28 full-time employees due to rising costs

Posted at 10:40 PM, Aug 03, 2022

BOZEMAN — Bozeman Health recently laid off 28 leadership staff and is eliminating 25 positions that were open. People that held these positions were managers, administrators, and directors. CEO John Hill said this decision came down to economic uncertainty, labor shortages, and preserving the jobs of healthcare professionals.

"The individuals that left Bozeman Health yesterday were our friends and colleagues,” said Hill. “They've been incredible leaders and their contributions have been extraordinary.”

The decision to let go of leadership staff was not performance related, according to Hill. He said rising healthcare costs, inflation, and labor shortages are impacting the healthcare system’s revenue.

“The crisis we find ourselves in after the pandemic has really stressed our entire organization,” said Hill.

After the pandemic, more and more healthcare professionals experienced burnout. For the sake of their own health, these doctors and nurses decided to walk away. After this, Bozeman Health began hiring temporary workers, which became a financial burden.

Hill said in an email that costs this year have surpassed revenue by 8 percent, resulting in a loss of $2.5 million each month in the first six months of 2022.

Bozeman Health's priority right now is retaining the doctors and nurses they already have and recruiting more.

“That difficult decision to not impact the frontlines in why we went to the leadership roles,” said Hill.

Hill says the leadership staff often serves as the hub of the wheel that keeps the healthcare industry rolling.

“Their responsibilities were critical, and those areas of responsibility will have to be assumed by other leaders in the organization,” said Hill.

The people who lost their jobs will get up to six months of severance pay, extended health insurance, mental health support, unemployment pay, career placement services, and letters of recommendation.

The decision was tough according to Hill, but he says they have to be leaner about how they deliver care in the post-pandemic economy.

“We have an obligation to support this community,” said Hill. “Making sure healthcare is accessible and affordable for our community was the very core of our decision.”