St. Luke’s Health System says it will lay off workers in Idaho. Who’s affected, and why

St. Luke’s Health System says it is laying off nearly 200 employees in the coming months, mostly in nonclinical and administrative roles.

The nonprofit health system notified its workforce on Wednesday that about 2% of its positions are being eliminated, according to a news release that cited financial hardships.

Roughly 150 positions, nearly half of the 2%, have already been eliminated in recent months through attrition by employees who left and open positions that have not been filled, Myron said. The upcoming round of layoffs is expected to be completed by April.

St. Luke’s, the largest health care system in Idaho and the largest private-sector employer of Idahoans, employs more than 16,000 people.

“The past three years have been a dynamic and challenging time in the health care industry and within the communities St. Luke’s serves – a trend that is expected to continue,” St. Luke’s said in a news release. “Many health care systems, including St. Luke’s, are experiencing operational and financial impacts that require adjustments.”

The nonprofit said its offering severance packages and career support to the workers.

Christine Myron, spokesperson for St. Luke’s, told the Idaho Statesman by phone that direct conversations with the affected employees will take place over the next few days. She said she didn’t know how many Boise positions are being eliminated, and she anticipates that information will become available next week.

Myron said St. Luke’s still faces a shortage of clinical workers and will continue recruiting in those areas. The health system hopes to limit the impacts the workforce reductions have on direct patient care.

“We definitely need folks who are working directly with patients,” Myron said.

In the news release, St. Luke’s President and CEO Chris Roth noted that the nonprofit’s expenses have been increasing faster than the rates it is paid for its services.

St. Luke’s said it has already made attempts to reduce discretionary spending, decrease capital spending, trim executive leadership positions and slow hiring in nondirect patient care areas.

“This trend is not sustainable, and we expect significant financial and resource pressures to continue,” Roth said. “We understand that these decisions impact people – our colleagues and often, our friends, whose contributions are valued – which is why this is a difficult decision to reach.”