Ochsner Health Eliminates 770 Jobs

Leadership at Louisiana's largest health system cites clinical workforce shortages and COVID-related financial strains.

Ochsner Health will eliminate 770 mostly management and nonclinical positions in Louisiana and Mississippi to address workforce shortages and financial stressors, CEO Pete November says Thursday in a memo to employees.

"Healthcare providers across the country have experienced increased labor costs, a shortage of patient care clinicians, high inflation and the end of pandemic relief funding from the government," November says in his memo. "Despite progress and our significant efforts to reduce expenses, we need to do more to ensure we can continue to deliver on our mission and meet the needs of the patients and communities we serve."

"Today, we are taking the difficult step of reducing the size of our workforce by eliminating 770 positions, which represents roughly 2% of our team. Impacted positions are management and primarily non-direct patient care roles."

November pledged in an interview with NOLA.com that the layoffs would be the first and the last contemplated by Ochsner. "We want everyone to know that when we are finished with this round we are done. This is it," November tells the website. "Folks do not have to come to work every day worried about what comes next."

NOLA.com reports that Ochsner's revenues were $6.4 billion in 2022, up from $5.9 billion in 2021. However, the New Orleans-based system lost $96 million last year and its expenses exceeded revenues by 1.5%. It's not clear how many of the eliminated positions are vacant, but the cuts are projected to save up to $150 million annually.

Ochsner operates 47 hospitals and more than 370 care venues in Louisiana, Mississippi, Alabama and the Gulf South. The system employs more than 36,000 people and more than 4,600 employed and affiliated physicians.

For laid-off employees, November pledged to "do everything we can to deliver the resources and support our team needs and treat everyone leaving our organization with the respect and dignity they deserve," including providing up to 65 days of full pay and benefits and other severance packages, career and job-hunting support, and details for applying for other jobs at the health system.  

"For those talented professionals who will be leaving us today: this is not the experience we hoped you would have at Ochsner. I want to thank you for all you have done and for sharing your talents with us," November says.