Geisinger lays off 47 IT workers
Jun. 5—Geisinger laid off 47 information technology workers in a department restructuring unrelated to its pending acquisition by health care giant Kaiser Permanente.
"To address financial challenges caused by high labor and supply costs that have persisted for more than a year, we must find ways to operate more efficiently while maintaining our high standards for quality care and service," Geisinger said in a statement. "As health care continues to evolve through technology and innovation, we must also continue to evolve our workforce."
Danville-based Geisinger reported an $842 million loss last year amid significant industry headwinds, inflationary pressures and struggling investment markets.
"As we continue to hire for other roles critical to providing the world-class care our patients, members and communities expect, department restructurings like this do happen across Geisinger from time to time," the statement reads.
Geisinger and California-based Kaiser announced plans in April for the newly formed Risant Health, a nonprofit created by Kaiser Foundation Hospitals, to acquire the local health system under a deal subject to regulatory approval. That transaction isn't expected to close until 2024.
The proposed deal would make Geisinger the first system to join Risant, which will operate independently and plans to grow by acquiring and connecting additional nonprofit health systems with a goal of expanding access to value-based care in more communities. Geisinger will retain its name and brand and remain Danville-based, officials have said.
Recent financial statements for Kaiser Foundation Hospitals, Kaiser Foundation Health Plan Inc. and their subsidiaries suggest Risant would make substantial funding available to Geisinger under the pending acquisition, including at least $2 billion as needed through 2028 to "support necessary hospital, ambulatory facility, technology and other strategic and routine capital."
The IT layoffs are "not connected to the proposed acquisition by Kaiser Permanente," Geisinger said.
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