Healthcare organizations are making tough decisions amid inflation and other unsettling market conditions.
As one of the biggest healthcare providers in the Charlotte area, Novant employs a significant number of local residents. However, that number is going to take a bit of a hit in the near future as the company is set to lay off more than 150 employees. It’s not immediately clear where all of the layoffs will take place. Unfortunately, this is not the first round of layoffs for the company in 2023, as around 50 workers were let go in the spring. The company continues to cite a difficult healthcare environment for the need to trim back the rolls. It should be said that these are relatively small rounds of layoffs in comparison to the overall scope of the company, as it employs around 36,000 people.
“In a challenging healthcare environment, we are focused on how we can work differently to prioritize direct patient care, operate more efficiently and reimagine how we serve our patients,” Novant said in a statement.
To the credit of Novant, job cuts have been rare over the recent history of this non-profit organization. Outside of the small layoffs earlier this year, no employees had been laid off for many years, meaning tens of thousands of people had enjoyed stable employment over that time. Unfortunately, current market conditions in healthcare are uncertain and some of the financial pressures being faced are leading many organizations to make tough choices.
The issues caused by inflation are not unique to healthcare, but they are set to make a significant impact in other markets, as well. With the costs of virtually everything set to go up, including labor and supplies, Novant reported that they are spending more than previously and that was in large part to blame for the cutbacks. While the future of the markets can be known, it seems likely that increasing costs will continue into 2024 and perhaps beyond.
While the bad news regarding Novant is the loss of some positions throughout the organization, the better news is the investment that is being made in healthcare facilities around the area. Specifically, Novant bought Pender Medical Center, which is notable because of its rural location. Rural areas are notoriously underserved by medical facilities around the country, so purchasing such a facility and investing money to improve and update it is great news for residents in that area who may have otherwise not had reasonable access to such services. Not only do active healthcare facilities in rural areas help people who need care, but they also provide jobs in regions that are sometimes low on employment opportunities.
There have been more and more layoff events announced by healthcare facilities around the country in recent months. As the country and the world continue to settle back into more “normal” business cycles in the aftermath of the pandemic, it’s yet to be seen how things will shake out and how markets will operate. Hopefully, those who have their jobs affected will be able to make a timely and suitable transition to a new role that continues to advance their careers.