NY-Based Healthcare Olean General Hospital Lays Off Employees Due to Decrease in Patient Volume

Olean General Hospital Layoffs
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Olean General Hospital Lays Off Employees in Different Divisions

The Olean, New York healthcare industry witnessed cuts as the Olean General Hospital layoffs were announced, with hospital officials citing decreased patient volume as contributing towards the job cuts.

According to the Olean Times Herald, Dennis McCarthy, vice president of marketing and communications for the Upper Allegheny Health System, said that the Olean General Hospital layoffs would be comprised of two management positions and four non-clinical staff positions. In addition, two full-time positions have been now reduced to part-time status and another 11 open positions have been closed.

Olean General Hospital belongs to the Upper Allegheny Health System. The Olean General Hospital staff numbers over 800 at the hospital and the outpatient health centers. The hospital has an additional 75 employees via contracted service arrangements.

Decline in Number of Patients Leads to Job Cuts

The healthcare layoffs came about due to a decline in outpatient numbers, while the hospital looked to reallocate its staff to areas of higher need.

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Olean was seeing more emergency room visits and therefore has appropriated resources to deal with those higher numbers, which led to several of those job cuts.

“We continue to deal with ongoing shifts in volume within inpatient and outpatient care so we need to rebalance staffing from time to time in order to put the right people in the right places and provide effective care,” McCarthy said, as reported by the Olean Times Herald. “In the current changing healthcare environment it is necessary to continually monitor staffing and, when necessary, make adjustments.”

The hospital has added several positions to help deal with the influx of emergency patients, but the lack of outpatients visiting Olean General Hospital has put a strain on other areas of the hospital.

Layoffs in Other Healthcare Companies in September 2017

The Olean General Hospital is hardly alone when it comes to healthcare layoffs. Several other high-profile job cuts took place within the industry, while technological trends are concerning for those currently working in healthcare.

In September, Molina Healthcare, Inc. (NYSE:MOH) announced almost 400 layoffs. This was mainly caused by a $230.0-million loss during the company’s second quarter. The job cuts were instituted in hopes of helping dig the company out from that financial hole.

Furthermore, Molina is looking to cut about 1,400 jobs, or 20% of its workforce, according to an internal company memo from July.

Another hit to the healthcare industry came from the political realm earlier this year. The Deferred Action for Childhood Arrivals, or DACA, was repealed by the Trump administration, putting as many as 700,000 people at risk of deportation. Many of those workers operate in the healthcare field, meaning that the industry may be left scrambling if the White House takes a harsher stance on these people’s rights to remain within the U.S.

A final concerning trend for the healthcare industry involves the risk of automation coming in and replacing or eliminating the need for many jobs. While still years away, there is worry within the sector that technological innovations will put many workers at risk of job loss.

 

Source

Layoffs at Olean General Hospital needed to ‘rebalance staffing’,” Olean Times Herald, October 3, 2017.

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