Five Significant Healthcare Layoffs in June 2017 Nationwide

job cuts

In the face of a major overhaul of the U.S. healthcare system, hospitals nationwide are both slashing jobs and cutting back on new hires as financial pressures weigh down administrations and concerns about the direction Republicans will steer healthcare policy mounts.  

The following five healthcare layoffs are just some of the biggest to hit the sector in the first few weeks of June 2017.

1. Waterbury Hospital in Connecticut has confirmed its plans to cut its workforce and leave vacant jobs unfilled. The hospital said the job cuts are due to many factors, including state funding cuts.

“Proposed and continued cuts in state reimbursement due to Connecticut’s budget crisis, regulatory changes at the state and federal level, and the growth of population health management are all having an impact on Waterbury Hospital,” hospital officials said.


The hospital did not disclose how many employees will lose their jobs or which positions are being affected. The hospital employs around 2,000 people.

2. The Mississippi State Personnel Board approved plans to cut 129 positions before the new fiscal year begins July 1, 2017.
The job cuts are expected to take place at three hospitals and health centers because of a more-than-$14.0-million budget shortfall.

Those affected include 69 at East Mississippi State Hospital in Meridian, 53 workers at Central Mississippi Residential Center in Newton, and three employees at the North Mississippi Regional Center in Oxford.

The 129 job cuts are just the beginning. The Mississippi department of mental health plans to slash 650 positions by June 2018.

3. Inovalon (NASDAQ:NOV), a health technology company based in Bowie, Maryland, said it will eliminate 113 employees by July 10. A company spokesperson said the 113 job losses come from across the country. At the end of 2016, the company employed 2,453 people, 870 fewer than was reported at the end of 2015.

Inovalon went public in 2015 and sells software that keep track of the efficiency and cost-effectiveness of healthcare services.

4. North Hawaii Community Hospital in Kamuela, Hawaii cut six positions. The layoffs, which represent less than two percent of the hospital’s total workforce, were done to reduce costs. Cuts included both clinical and nonclinical employees.

5. Central Maine Healthcare announced that it will close its urgent care facility in Auburn, Maine and its primary care clinic in Mechanic Falls, Maine, resulting in the loss of 38 jobs. Nine of the jobs are physicians, five are associate professionals, and 17 are support staff.
On top of that, seven staff members have had their hours or duties altered.

CEO Jeff Brickman said the last round of layoffs were the end of the, “major cost reductions we’ve been going through the last nine months.”

The job losses reduce the Lewiston-based health systems expenses by up to 10%. The system reported a $12.0-million deficit in 2016. Thanks to the job cuts, Brickman believes it will be profitable in 2018.

Connecticut hospital to lay off undisclosed number of employees,” Becker’s Hospital Review, June 20, 2017.
Mississippi agencies approved for layoffs after budget cuts,” Tri-City Herald, June 18, 2017.
Bowie health tech firm Inovalon to lay off 113 employees,” Baltimore Business Journal, June 13, 2017.
North Hawaii Community Hospital cuts 6 positions,” Becker’s Hospital Review, June 15, 2017.
Central Maine Healthcare closing Urgent Care in Auburn and Mechanic Falls practice,” Sun Journal, June 14, 2017.