Prime Healthcare Cuts 100 Roles at Illinois Hospitals Amid Acquisition Integration

Prime Healthcare, a major player in the U.S. healthcare landscape, has announced significant staff reductions at its recently acquired Illinois hospitals. This move comes as part of the company's efforts to streamline operations following its largest-ever acquisition earlier this year.

Workforce Reduction and Restructuring

Prime Healthcare is cutting more than 100 roles across eight Illinois hospitals it acquired from Ascension in March. The majority of these reductions occurred on Friday, with the remaining cuts scheduled to take place through July. According to a company spokesperson, the affected positions represent less than 1% of the approximately 14,000 employees at these facilities.

The restructuring aims to consolidate positions that were either duplicated or "not aligned with the care model and service line offerings" post-acquisition. Notably, most of the eliminated roles do not involve direct patient care, and no union positions are being impacted.

Acquisition Details and Investment Commitments

The staff reductions come in the wake of Prime's $375 million acquisition of nine hospitals and four care sites from Ascension, announced in July of the previous year. This deal, which closed in March, expanded Prime's presence in Illinois significantly. As part of the agreement, Prime committed to investing $250 million into the facilities for upgrades, technology improvements, and system updates.

Despite the cuts, Prime maintains that it has begun fulfilling its investment commitment. This comes against the backdrop of significant financial challenges, with the acquired Illinois facilities collectively losing nearly $200 million in the past year.

Concerns and Criticisms

The recent cuts and service changes have not gone unnoticed by public officials. Last month, Illinois Senators Richard Durbin and Tammy Duckworth expressed concerns in a letter to Prime CEO Prem Reddy. They cited the suspension of pediatric services at one hospital, the withdrawal of a trauma designation at a medical center, and the cancellation of obstetric and maternal care at a hospital in Kankakee.

"Prime Healthcare has only operated these eight Illinois hospitals for two months, and there are already profound concerns about patients losing access to care," the senators stated in their letter.

These developments at Prime Healthcare reflect broader trends in the healthcare industry, where financial pressures are leading to workforce reductions and service line evaluations across multiple health systems.