Novant Health hits 3rd layoff round as it outsources to Wipro
NORTH CAROLINA, UNITED STATES — Novant Health recently laid off an undisclosed number of employees as it continues outsourcing parts of its IT operations to India-based technology company Wipro.
This marks Novant’s third round of layoffs in 2023 as it aims to operate more efficiently. The health system cut 50 jobs last March and 160 in October, with the over 200 total layoffs representing its largest workforce reduction in nearly a decade.
However, the firm said that some affected employees will have opportunities to take on new roles as Novant’s IT model is redesigned.
The cuts have primarily impacted IT, management, and administrative roles so far. At the same time, Novant is actively growing its regional hospital network.
Most significantly, Novant announced a $2.4 billion agreement to acquire three Tenet Healthcare hospitals in South Carolina. It also recently spent $320 million to buy two North Carolina hospitals from Community Health Systems.
Chief Information Officer Onyeka Nchege said that the IT transition is a response to the evolution of healthcare providers.
“Our goals are to provide new and improved services to our customers, business partners, and patients and to maximize our resources so we can invest in creating a healthier future for our patients, our people, and our organization,” Nchege added.
Novant Health is a large not-for-profit health system focused on hospital, outpatient, and physician services across North Carolina, Virginia, South Carolina, and Georgia. It employs thousands of people and generates billions in revenues by providing integrated health services.
The firm’s latest round of layoffs highlights the difficult balancing act for health systems — cutting costs through layoffs and outsourcing while spending billions to expand market reach and serve more patients. Novant aims to achieve both through its latest moves.
Novant Health is just among many health systems that are expected to outsource their key functions in 2024. In a recent interview, Deloitte U.S. Healthcare Leader Tina Wheeler said that sending back-office tasks overseas could help address tight margins and rising expenses in struggling health organizations.
