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Allegheny Health Network and Highmark Health announce layoffs

Allegheny Health Network and Highmark Health announce layoffs
MIKE C.: PITTSBURGH’S BREAKING NEWS TEAM HAS CONFIRMED HUNDREDS OF LAYOFFS AT ALLEGHENY HEALTH NETWORK AND HIGHMARK. AHN CUTTING 250 JOBS. THE CUTS WILL, IN CORPORATE DIMINISHED RATE OF SERVICES AS WELL AS CLINICAL SUPPORT STAFF. HIGHMARK HEALTH IS REDUCING ITS WORKFORCE BY APPROXIMATELY
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Allegheny Health Network and Highmark Health announce layoffs
Allegheny Health Network is laying off about 250 employees, a spokesman said Thursday.Also, the Highmark Health IT department and HM Health Solutions are cutting about 130 positions, according to a statement.AHN said its cutbacks were due to both the impacts of the coronavirus outbreak and the growing use of telehealth that is expected to continue.Most of AHN's job cuts are in corporate and administrative services, along with some clinical support staff at community physician practices."The action will have no impact on AHN's hospital-based caregivers," the healthcare system said.Below is the full statement from Allegheny Health Network:Similar to other U.S. health care providers, Allegheny Health Network has experienced significant operational and economic challenges related to the COVID-19 pandemic. In western PA, where the surge of COVID-19 patients has been minimal, social distancing measures and other strategies, such as postponement of elective surgeries, have drastically reduced patient volumes across most service lines. The pandemic has also precipitated a steep rise in the number of virtual and tele-health patient engagements across the network. AHN’s telehealth program has grown from less than 50 patient appointments per day prior to the pandemic to 4,000 per day now. Although patient volumes at AHN are increasing as the network returns to a more normalized schedule for surgical cases and other procedures, the dramatic increase in telehealth is a trend that is expected to continue to a significant degree in a post-COVID 19 world and over the long-term. In response to these developments, AHN today is moving forward with a realignment of its operations that will include a workforce reduction of approximately 250 employees. Those impacted by the workforce reduction are mostly from AHN’s corporate and administrative services, in addition to some clinical support staff based at AHN’s community physician practices. The action will have no impact on AHN’s hospital-based caregivers. AHN employees who are displaced as a result of this action and who are eligible will be offered severance packages, assistance with external job placement, and the opportunity for redeployment with the Highmark Health enterprise should their qualifications match other open positions. Impacted employees will have the opportunity to extend their existing healthcare benefits for a minimum of six months at no additional cost to themselves. They will also be eligible for unemployment and stimulus benefits. Today is a difficult day for our organization. Any action that displaces employees, no matter how necessary, is the hardest decision an organization can make and we are doing everything we can to help support those who have been impacted. The unprecedented impact of the COVID-19 pandemic has fundamentally altered the way we interact with many of our patients. It’s a new normal that we must embrace moving forward in order to best position our organization for continuing, long-term success in meeting the health care needs of our patients and communities.AHN currently employs more than 21,000 people, representing a growth of 37% over the past five years. The Network also continues to recruit for positions in clinical and operational areas that are critical to the organization’s strategy. In a separate action today, Highmark Health’s IT department and HM Health Solutions reduced their workforce by approximately 130 positions due to the impacts of the COVID 19 pandemic. Below is the full statement from Highmark Health:As a result of our continuous assessment of ways to enhance our technology organization to ensure that we are delivering the best outcomes, in 2015 we announced that we were changing how Highmark Health’s IT function sources infrastructure services. Today we are announcing the final stage of this transition, which involves the reduction of approximately 63 positions in the Highmark Health IT organization. These employees will immediately be eligible for employment by our external partner.In addition, to maintain our solid position and continue to deliver effectively and efficiently to our members during the uncertainty and volatility driven by the COVID 19 pandemic, while also securing a strong future for our organization, we must assess every aspect of our operations, and this includes our workforce. The economic environment triggered by the pandemic has resulted in increased unemployment and therefore, less insured members at the health plans that HMHS serves. As a result of all these considerations, we are reducing the size of our workforce by an additional 60 positions. Positions impacted by today’s actions were in the Highmark Health IT organization and HM Health Solutions, our enterprise Technology organization. Those who are displaced by these actions, and who are eligible, will receive a severance package and/or have the opportunity for redeployment within the organization based on their qualifications for open roles. Impacted employees will also have the opportunity to extend their existing healthcare benefits for a minimum of six months at no additional cost to themselves. They will also be eligible for unemployment and stimulus benefits.

Allegheny Health Network is laying off about 250 employees, a spokesman said Thursday.

Also, the Highmark Health IT department and HM Health Solutions are cutting about 130 positions, according to a statement.

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AHN said its cutbacks were due to both the impacts of the coronavirus outbreak and the growing use of telehealth that is expected to continue.

Most of AHN's job cuts are in corporate and administrative services, along with some clinical support staff at community physician practices.

"The action will have no impact on AHN's hospital-based caregivers," the healthcare system said.

Below is the full statement from Allegheny Health Network:

Similar to other U.S. health care providers, Allegheny Health Network has experienced significant operational and economic challenges related to the COVID-19 pandemic. In western PA, where the surge of COVID-19 patients has been minimal, social distancing measures and other strategies, such as postponement of elective surgeries, have drastically reduced patient volumes across most service lines. The pandemic has also precipitated a steep rise in the number of virtual and tele-health patient engagements across the network. AHN’s telehealth program has grown from less than 50 patient appointments per day prior to the pandemic to 4,000 per day now.

Although patient volumes at AHN are increasing as the network returns to a more normalized schedule for surgical cases and other procedures, the dramatic increase in telehealth is a trend that is expected to continue to a significant degree in a post-COVID 19 world and over the long-term.

In response to these developments, AHN today is moving forward with a realignment of its operations that will include a workforce reduction of approximately 250 employees. Those impacted by the workforce reduction are mostly from AHN’s corporate and administrative services, in addition to some clinical support staff based at AHN’s community physician practices. The action will have no impact on AHN’s hospital-based caregivers.

AHN employees who are displaced as a result of this action and who are eligible will be offered severance packages, assistance with external job placement, and the opportunity for redeployment with the Highmark Health enterprise should their qualifications match other open positions. Impacted employees will have the opportunity to extend their existing healthcare benefits for a minimum of six months at no additional cost to themselves. They will also be eligible for unemployment and stimulus benefits.

Today is a difficult day for our organization. Any action that displaces employees, no matter how necessary, is the hardest decision an organization can make and we are doing everything we can to help support those who have been impacted. The unprecedented impact of the COVID-19 pandemic has fundamentally altered the way we interact with many of our patients. It’s a new normal that we must embrace moving forward in order to best position our organization for continuing, long-term success in meeting the health care needs of our patients and communities.

AHN currently employs more than 21,000 people, representing a growth of 37% over the past five years. The Network also continues to recruit for positions in clinical and operational areas that are critical to the organization’s strategy.

In a separate action today, Highmark Health’s IT department and HM Health Solutions reduced their workforce by approximately 130 positions due to the impacts of the COVID 19 pandemic.

Below is the full statement from Highmark Health:

As a result of our continuous assessment of ways to enhance our technology organization to ensure that we are delivering the best outcomes, in 2015 we announced that we were changing how Highmark Health’s IT function sources infrastructure services. Today we are announcing the final stage of this transition, which involves the reduction of approximately 63 positions in the Highmark Health IT organization. These employees will immediately be eligible for employment by our external partner.

In addition, to maintain our solid position and continue to deliver effectively and efficiently to our members during the uncertainty and volatility driven by the COVID 19 pandemic, while also securing a strong future for our organization, we must assess every aspect of our operations, and this includes our workforce. The economic environment triggered by the pandemic has resulted in increased unemployment and therefore, less insured members at the health plans that HMHS serves. As a result of all these considerations, we are reducing the size of our workforce by an additional 60 positions.

Positions impacted by today’s actions were in the Highmark Health IT organization and HM Health Solutions, our enterprise Technology organization. Those who are displaced by these actions, and who are eligible, will receive a severance package and/or have the opportunity for redeployment within the organization based on their qualifications for open roles. Impacted employees will also have the opportunity to extend their existing healthcare benefits for a minimum of six months at no additional cost to themselves. They will also be eligible for unemployment and stimulus benefits.