Baylor Scott & White lays off 102 corporate finance employees to cut costs
Dallas-based Baylor Scott & White Health, reportedly the largest nonprofit health care system in Texas, is laying off 102 finance and accounting employees.
The move is intended to contribute to the system’s efforts to reduce costs and reshape operations.
Although the system says it is retaining about two-thirds of its corporate finance department, the cut positions are being outsourced to a third-party vendor in India, according to The Dallas Morning News.
Some of the affected employees have been offered positions with the supplier, a Baylor Scott & White Health spokesperson said. Health financing news.
WHY IT’S IMPORTANT
This is the second wave of layoffs for the health system since the start of the pandemic.
In May, it laid off about 1,200 employees, or almost 3% of its workforce, due to the financial fallout caused by the pandemic, according to KBTX.
In addition to the layoffs, it also temporarily cut salaries for senior executives, changed its compensation models for doctors, and laid off an unspecified number of employees.
These actions are a result of the system being more intentional with its resources, a spokesperson said in a statement. It is working to add more clinical care positions and has 2,000 positions open, including doctors, nurses and respiratory therapists.
THE GREAT TREND
Baylor Scott & White Health last year called off a merger with Memorial Hermann in what would have been a $14 billion deal that would have formed Texas’ largest nonprofit health care system, with a reach in 30 counties.
With the outbreak of COVID-19 causing elective surgeries to be canceled in the spring, many healthcare organizations have been forced to cut staff.
In April, the unemployment rate hit a record high of 14.7%, the highest since the Great Depression. The rate has since recovered and stood at 6.7% in November, according to the US Bureau of Labor Statistics.
“At the heart of our mission – now and in the future – is patient care, and our system is constantly looking for ways to reduce costs and improve our ability to provide affordable and quality health care. quality to our patients and members,” Baylor Scott & White Health said in a statement. “As we continue to reshape our operations for the future, we are being more intentional in how we direct our resources toward patient and member care.”
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