TACOMA — Virginia Mason Franciscan Health is "transitioning" several of its virtual services and administrative functions, which will impact around 200 employees’ jobs.
According to Virginia Mason, the hospital is “realigning resources and improving operational efficiency.”
A state notice released today outlines the hospital intends to “separate” with 116 workers, though a spokesperson for Virginia Mason says approximately 200 team members will be affected.
The state notice details an apparent location closure in Tacoma affecting these employees.
“Affected employees have been notified and are receiving personalized support, including placement assistance and access to open roles within our organization,” read the statement from Virginia Mason.
The separations are expected to begin on July 28th.
Here is the full statement from Virginia Mason, provided by Interim Market President Chad Melton:
“Virginia Mason Franciscan Health is taking critical but necessary steps to remain financially sustainable so we can continue delivering high-quality care to the communities we serve.
Like health care systems across the country, we are 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.
To protect access to care long term, we are realigning resources and improving operational efficiency. 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.
These are difficult and necessary decisions to ensure we can continue meeting the needs of our patients — today and into the future.”
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