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ProMedica lays off a number of non-clinical employees

A company spokeswoman said the number of layoffs represents less than 1% of ProMedica's total workforce, but didn't provide an exact amount.

TOLEDO, Ohio — ProMedica is laying off an unknown number of workers as the Toledo-based healthcare system continues to navigate choppy financial waters.

Company spokeswoman Tausha Moore did not provide an exact number of layoffs to WTOL 11, but did say in a statement Wednesday that the amount is less than 1% of the total workforce. The cuts affect non-clinical staff.

ProMedica employs about 44,000 people in the United States, according to its most recent financial filings. 1 percent would be about 440 people.

Moore's full statement is below:

"Many hospitals and health systems are facing significant financial challenges stemming from the pandemic fallout and rising expenses. The recent S&P Report and Kaufman Report note that the first quarter of 2022 was the most challenging financial quarter on record for U.S. non-profit hospitals and health systems with no immediate end in sight. 

"ProMedica regularly evaluates ways to operate more effectively and efficiently while continuing to deliver high-quality, compassionate care. As we move forward, we remain focused on taking action to build stability and sustainability throughout the organization. Accordingly, as part of our efforts to position ProMedica for long-term success and manage through current economic challenges caused by the pandemic, we have made the difficult decision to eliminate some non-clinical positions. The impacted positions represent less than 1% of our workforce and are primarily related to pilots and processes outside of our core business as well as certain corporate services. 

"We empathize with the affected employees and are committed to assisting them through their transition. ProMedica’s human resources department is working closely with affected employees to provide support during this process."

2022 has not been an easy year for ProMedica.

In May, the company reported a first quarter loss of $126 million. ProMedica reported operating income losses of $136.3 million for 2021.

Later that month, Chief Operating Officer Arturo Polizzi was named the new president of the company, a title held by CEO Randy Oostra until that point. Oosta remains CEO.

Multiple top executives were let go, including Chief Financial Officer Steve Kavanaugh.

Also this year, finance and insurance company Fitch Ratings downgraded ProMedica's credit rating from BBB- to BB+. In May, Moore offered several reasons for the financial woes, including staffing agencies raising rates during the COVID-19 pandemic and more patients needing longer, more intensive care. 

Paramount, ProMedica's health plan, laid off 200 people in March after losing a Medicaid contract.

RELATED: Randy Oostra out as ProMedica president, will remain CEO

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