Prime Healthcare Cuts Over 100 Roles at Recently Acquired Illinois Hospitals

Prime Healthcare, a major player in the U.S. healthcare industry, has announced significant staff reductions at eight Illinois hospitals it recently acquired from Ascension. The cuts, affecting more than 100 positions, come just three months after the completion of the acquisition deal.

Workforce Reduction Details

The staff reductions began on Friday, with the remaining cuts scheduled to take place through July. According to a Prime Healthcare spokesperson, the layoffs impact fewer than 1% of the approximately 14,000 employees at the affected facilities. This workforce includes 13,000 employees who transitioned from Ascension and 1,000 in newly created roles.

Prime Healthcare stated that the cuts are aimed at consolidating a "small number" of positions that were either duplicated or "not aligned with the care model and service line offerings" following the acquisition. The company emphasized that most of the eliminated roles do not involve direct patient care, and no union positions are affected.

Acquisition Background and Investment Commitments

The staff reductions come in the wake of Prime Healthcare's largest-ever acquisition, completed in March 2025. The $375 million deal with Ascension included nine hospitals and four care sites in Illinois, although one hospital, Ascension St. Elizabeth in Chicago, was closed before the transaction was finalized.

As part of the acquisition agreement, Prime Healthcare committed to investing $250 million in the acquired facilities. This investment plan includes facility upgrades, substantial technology improvements, and system updates. The company reports that it has already begun fulfilling this commitment, despite the Illinois facilities collectively losing nearly $200 million in the past year.

Concerns and Criticisms

The recent cuts have not gone unnoticed by public officials. Last month, Illinois Senators Richard Durbin and Tammy Duckworth expressed concerns about Prime Healthcare's management of the newly acquired facilities. In a letter to Prime CEO Prem Reddy, the senators highlighted 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, Illinois.

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

As the healthcare industry continues to face financial challenges, Prime Healthcare's actions in Illinois reflect a broader trend of cost-cutting measures being implemented by hospital systems across the United States. The company's efforts to streamline operations while fulfilling its investment commitments will likely be closely watched by industry observers and stakeholders in the coming months.