Hospital mass layoffs slow down at end of 2010

Mass layoffs at hospitals dipped in November 2010, according to government data.

The U.S. Bureau of Labor Statistics reported on Dec. 22, 2010, that six mass layoffs occurred at hospitals in November 2010, leading 419 people to claim unemployment benefits. This was significantly fewer than in October 2010 but comparable to November 2009.

Sixteen mass layoffs occurred at hospitals in October 2010 that affected at least 1,031 people. There were seven in November 2009, with at least 416 losing their jobs.

However, the most recent numbers mean that 2010 is no longer on track to beat the 2009 total of 152 mass layoffs in this setting affecting 11,787 people. The highest number of hospital mass layoffs occurred in 2009. The number of people affected was second only to 2005, when a significant number of hospital workers in New Orleans lost their jobs after Hurricane Katrina struck.

If the pace continues, there will be 146 mass layoffs in 2010 that affect 11,255 people.

Health care also continued to create jobs. Hospitals added 8,000 jobs in November 2010, according to BLS numbers released Dec. 3, 2010. Counts of online job listings and expert analysis indicate that most of these are clinical rather than administrative positions.

Mass layoff statistics for December 2010 are scheduled to be released Jan. 27. Indications through mid-month were that the numbers will be relatively small.

Salinas Valley Memorial Healthcare System in Salinas, Calif., announced Dec. 10, 2010, that up to 120 workers, or 5% to 6%, of its work force would be laid off because of lower reimbursement rates from Medicare and Medi-Cal. Revenues were off because the institution was providing greater amounts of unreimbursed care to those without insurance. Those laid off included about 40 nurses but no physicians.

No other hospital layoffs affecting more than 100 people were reported in December 2010.

The economy experienced fewer mass layoffs as the recession continued to loosen its grip. In November 2010, employers took 1,586 mass layoff actions affecting 152,816 workers. The number of events decreased by 65 compared with October 2010. Mass layoffs also affected 4,757 fewer employees. The manufacturing industry accounted for the greatest number of mass layoffs.