Adventist Health outsources back-office functions
ILLINOIS, UNITED STATES — Adventist Health is outsourcing six back-office functions affecting approximately 750 employees, a cost-cutting restructuring driven by a $224 million operating loss in 2024.
Back-office outsourcing follows $224 million loss
Kerry Heinrich, president and chief executive officer of Adventist Health, linked the organization’s financial position directly to its ability to deliver care.
“Our financial health is directly tied to our ability to deliver the exceptional care our patients depend on in the communities where they live and work,” Heinrich said.
He called the workforce restructuring “a necessary response to the challenges facing our organization and industry.”
The California-based system, which operates 27 acute care facilities and more than 440 care sites across the West Coast and Hawaii, reported a $224 million operating loss in 2024.
The restructuring outsources information technology (IT), finance, human resources (HR), talent acquisition, supply chain, and accounts payable to vendor partners while Adventist Health retains full management responsibility.
A $224 million operating loss in 2024 makes Adventist Health’s back-office outsourcing a financial imperative, not a discretionary efficiency project.
AI and outsourcing reshape Adventist’s operations
“Through these strategic initiatives, we will position ourselves as a trusted healthcare partner for generations to come,” Heinrich said.
Adventist Health is pairing the back-office move with accelerated adoption of artificial intelligence (AI) capabilities, which the system described as central to its path toward scalable growth.
An Epic system implementation is also scheduled for September 2026, deepening the organization’s investment in integrated clinical technology.
Approximately 750 of Adventist Health’s 38,000-plus employees are affected by the restructuring, with some expected to transition into new roles with the system or its vendor partners, according to Becker’s Hospital Review.
Around 800 corporate employees are expected to work from the health system’s Roseville, California headquarters beginning January 2026 under a parallel return-to-office policy.
With an Epic implementation, AI adoption, and back-office outsourcing advancing in parallel, Adventist Health is executing a systems-level overhaul rather than isolated cost cuts.
Adventist Health’s decision to contract out IT, HR, finance, and supply chain functions reflects a broader pattern in which large United States health systems are separating clinical delivery from administrative operations.
As margin pressure persists across the sector, healthcare outsourcing has become a direct response to operational scale that internal staffing models cannot sustain at current reimbursement rates.
The functions Adventist Health is outsourcing sit among the highest-volume administrative processes where business process outsourcing (BPO) delivers consistent unit-cost advantages over in-house teams.
Pairing that with AI automation and an Epic implementation gives the organization a platform to scale without proportionally growing its administrative workforce.
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