Mass layoffs in health care drop slightly

Several reports have documented that some hospitals are struggling financially as the U.S. economy tries to recover, although there are indications that job losses in the industry are slowing -- and that some hiring is coming back.

Hospitals had seven mass layoffs in October, leading 398 people to file for unemployment insurance, according a report issued Nov. 22 by the U.S. Bureau of Labor Statistics. Another seven affecting at least 449 people occurred in the ambulatory care setting, a category that includes physician offices. Both totals were down from September.

A mass layoff is defined as affecting at least 50 people from one company.

Eleven mass layoffs involving 853 people occurred at hospitals in September. Seven more happened in the ambulatory care setting that month, with at least 625 people losing their jobs. If this pace continues through the end of the year, there will be nearly 124 mass layoffs at hospitals affecting more than 8,107 people. An additional 95 would occur in the ambulatory care setting involving at least 6,750 people.

In 2010, there were 137 mass layoffs at hospitals, leading to 10,490 people claiming unemployment. An additional 79 mass layoffs occurred in the ambulatory care setting in 2010, with at least 5,124 job losses.

Layoffs tend to affect administrators the most, with physicians and other clinical staff rarely losing their positions, analysts said. However, there are signs that administrative jobs may return soon.

According to a CareerBuilder statement released Nov. 15, 24% of the 282 health care employers surveyed had eliminated middle-management positions since the beginning of the recession. Of this group, 44% planned to bring these jobs back because 74% said there was a negative impact to the organization. Forty-seven percent said the loss of middle management lowered morale, and 27% found that workers were less motivated.

"Health care employers are bringing middle management back because they give balance and direction within complex organizations," said Rob Morris, product director of MiracleWorkers.com, a CareerBuilder website for the medical industry.

Although there are some signs of job recovery in medical care, there also is significant concern in the industry about the possibility of further cuts to government programs.

The American Hospital Assn. released an analysis on Sept. 9 warning that more than 194,000 jobs could be lost by 2021 if the Joint Select Committee on Deficit Reduction, or "super committee," failed to compromise on spending cuts. The super committee announced Nov. 21 that it was not possible to come to a bipartisan agreement by the Nov. 23 deadline.