UChicago, Rush hospitals lay off staff, citing financial struggles
University of Chicago Medical Center is facing the “same challenges” other health systems have, a representative says.
By Violet Miller | Chicago Sun-Times
UChicago, Rush hospitals lay off staff, citing financial struggles
University of Chicago Medical Center is facing the “same challenges” other health systems have, a representative says.
By Violet Miller | Chicago Sun-TimesTwo of Chicago’s largest medical groups laid off employees Thursday, citing money troubles.
University of Chicago Medical Center officials say the hospital is facing the “same challenges” other health systems have, which led to the 180 layoffs.
“The fact is many outside pressures including higher supply and labor costs are converging as healthcare delivery rapidly evolves,” president Tom Jackiewicz and Mark Anderson, executive vice president of medical affairs, wrote in a memo to employees on Thursday. “Additionally, we grew our staff to address the pandemic, which was necessary for that moment but cannot be maintained.”
Laid-off employees, about 2% of the medical center’s staff, were given severance packages, U. of C. representatives said in a written statement: “The majority of affected positions are not direct patient facing, and these changes will not affect the quality of patient care.”
The UChicago hospitals reported $2.4 billion in revenue in 2021 and $2.6 billion in revenue in 2022, while net income decreased by $25.6 million, according to tax documents filed in May 2023. Five employees received seven-figure salaries in 2022.
UChicago is building a 575,000-square-foot, $815 million cancer center — to open in 2027 — at its Hyde Park campus.
Rush University Medical Center confirmed it laid off some employees but wouldn’t say how many.
“In response to financial headwinds affecting healthcare providers nationwide, Rush has undertaken a restructuring resulting in elimination of some administrative and leadership positions,” a Rush representative said in a written statement.
Rush reported $2.4 billion in revenue in 2021 and $2.6 billion in 2022, while net income increased $18 million, according to tax documents filed last May. In 2022, 10 employees received seven-figure salaries.
Also, a health care provider for migrants and asylum-seekers in Pilsen has cut some workers’ pay by 20% .
At Alivio Medical Center in Pilsen, dozens of employees have had their hours reduced from 40 a week to 32. The affected workers range from executives to medical assistants, nurses and front-desk staff.
Former Alivio spokeswoman Terri Rivera said no one has been laid off but that some employees have quit over the furloughs. She would not say how many people have been furloughed but said Alivio still has about 250 employees at seven clinics.
“This is incredibly traumatic” for the employees, said Anne Igoe, a vice president of the SEIU Healthcare union, which represents about 40 Alivio employees who have been furloughed, including medical assistants and people who work the front desk and answer phones at the call center.
Ollie Idowu, president and chief executive officer of the Illinois Primary Health Care Association, which lobbies on behalf of 54 community health centers in the state, said clinics are struggling financially statewide. Beyond the ending of COVID-19 relief money that paid for vaccinations and testing, Idowu said they also are dealing with the instability of federal funding.
Chicago Sun-Times reporter Michael Loria and WBEZ’s Kristen Schorsch contributed.