Virginia Mason Franciscan Health files notice of layoffs including in Tacoma
According to a Worker Adjustment and Retraining Notification filed Thursday, the layoffs will commence July 28, affecting 116 workers.
A VMFH media representative told The News Tribune via email that the layoffs are across the health care system, and 'not limited to Tacoma.'
Chad Melton is Interim president, Puget Sound Market, for VMFH. In a statement, Melton said the cuts were part of 'critical but necessary steps to remain financially sustainable so we can continue delivering high-quality care to the communities we serve.'
'This includes transitioning several virtual services and administrative functions, which will impact approximately 200 team members. Affected employees have been notified and are receiving personalized support, including placement assistance and access to open roles within our organization.'
Melton noted that VMFH, 'like health care systems across the country,' is facing significant financial pressures 'including rising labor and supply costs, increasing claim denials and chronic underpayment from government programs.'
'These challenges have only intensified in Washington state, where a new budget introduces new taxes that directly affect hospitals and reduces reimbursement, most notably by capping payments for care provided to state and school employees. These changes are expected to cost VMFH an additional $30 million each year.'
Melton said that the system as a result was 'realigning resources and improving operational efficiency.'
'These are difficult and necessary decisions to ensure we can continue meeting the needs of our patients — today and into the future,' he added.
No further details were available Thursday night.
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