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Jefferson Health, a leading healthcare provider in the Philadelphia region, announced plans to lay off hundreds of employees, a move that will affect about 1% of its workforce. The layoffs come amid rising healthcare costs and financial challenges faced by many healthcare institutions.

In a statement, Jefferson Health said that the decision was made as part of an effort to streamline operations and ensure the long-term sustainability of the organization. The layoffs will impact various departments, but the healthcare provider emphasized that patient care will remain a top priority.

“We understand the impact this has on our employees and their families,” said Dr. Stephen Klasko, CEO of Jefferson Health. “This decision was incredibly difficult, but it’s necessary to adapt to the evolving healthcare landscape and continue to provide quality care to our community.”

The hospital system, which includes Thomas Jefferson University Hospitals and several other facilities, has been grappling with challenges related to staffing, rising medical supply costs, and reduced reimbursements from insurance companies.

While Jefferson Health has not provided specific details about which departments will be affected, the layoffs are expected to be spread across various levels of the organization, from administrative staff to clinical support roles.The move has raised concerns among some employees and labor groups, who worry about the potential impact on patient services and the remaining staff. However, Jefferson Health assured the public that they are committed to minimizing disruptions and ensuring continued access to care.

“We will work to support those affected by these changes, including offering assistance with job placement and severance packages,” said Dr. Klasko.

The layoffs are expected to take place over the next few weeks. Jefferson Health joins a growing list of healthcare providers facing similar challenges as the industry adapts to a complex economic environment.

In the coming days, Jefferson Health plans to meet with its employees to discuss the next steps and provide support to those impacted by the layoffs.

The decision by Jefferson Health has sparked a wider conversation about the state of healthcare employment and the financial pressures facing the industry, particularly as hospitals face increased demand for services during ongoing public health challenges.