GRAND RAPIDS, Mich. — Spectrum Health and Beaumont Health have confirmed that they will be laying off 400 workers.
The health system said that the reason for the layoffs was due to significant financial pressures. The financial pressures include historic inflation, rising pharmaceutical and labor costs, COVID-19, and the expiration of CARES Act funding.
The layoffs will be in management and non-patient/health plan member-facing roles.
However, Spectrum and Beaumont also said that their merger has put them in a stronger position to face these financial challenges. The full statement can be read below:
"Spectrum Health and Beaumont Health came together as a new health system for Michigan to build a future where health is simple, affordable, equitable, and exceptional. Our health system, like others around the nation, is facing significant financial pressures from historic inflation, rising pharmaceutical and labor costs, COVID-19, expiration of CARES Act funding, and reimbursement not proportional with expenses. Joining together as one health system places us in a stronger position to face these challenges, while ensuring quality care for our communities for generations to come. Since the beginning of the year, we have recruited around 10,000 people, predominately into open roles directly serving our patients and health plan members. We have also made the difficult decision to eliminate about 400 management and non-patient/health plan member-facing roles from our 64,000 team members. We are grateful for the contributions and years of dedicated service provided by our impacted team members and are working to help them find employment within our health system and elsewhere. We remain deeply committed to caring for our team members and our community."
BHSH System
