Main Line Health cuts 200 nonclinical jobs amid financial struggles
PHILADELPHIA, UNITED STATES — Main Line Health, a nonprofit health system serving Philadelphia’s western suburbs, has laid off nearly 200 nonclinical employees—approximately 1.5% of its workforce—in an effort to address ongoing financial challenges.
The layoffs, announced last week, primarily affect administrative and management roles in departments such as IT, finance, human resources, revenue cycle, and accounting.
The move is expected to save the organization over US$30 million annually as it works to stabilize its finances following three consecutive years of financial losses.
Consecutive years of financial losses
Main Line Health has faced mounting financial pressure in recent years. For the fiscal year ending June 30, 2024, the organization reported a $61 million operating deficit—an improvement from the $125 million loss recorded the year prior.
However, CEO Jack Lynch highlighted persistent challenges such as inadequate Medicare and Medicaid reimbursement rates, delayed federal COVID-19 aid payments, and insurance denials as contributing factors to the system’s struggles.
“The landscape in health care is awful, and it’s only getting worse,” Lynch said in an interview.
The layoffs extended beyond rank-and-file employees to include several management positions, such as vice presidents. However, clinical staff—including nurses, medical assistants, and housekeepers—were not impacted by the cuts.
Expansion plans focus on outpatient growth
Despite the layoffs, Main Line Health is actively pursuing growth initiatives to strengthen its outpatient care network. The organization plans to open a new facility near Downingtown and develop medical offices on the former campus of St. Charles Borromeo Seminary in Wynnewood.
“We’re spending a lot of effort and focus on growing our ambulatory footprint, both in places, locations, and number of people we care for,” Lynch emphasized.
Additionally, Main Line’s hospitals remain busy as they absorb patients from neighboring health systems that have closed facilities in recent years. Lankenau and Riddle Hospitals have seen increased demand following Crozer Health’s closures in Delaware County.
Paoli Hospital has also been impacted by Tower Health’s shuttering of Jennersville and Brandywine Hospitals in Chester County.
How outsourcing could ease Main Line Health’s financial strain
Outsourcing nonclinical operations could present a strategic solution for health systems like Main Line Health. By contracting third-party providers for services such as IT support or billing, organizations can reduce overhead costs while maintaining efficiency. This approach allows health systems to prioritize patient care without further workforce reductions.
Outsourcing providers also bring specialized skills and advanced technologies that healthcare systems may lack internally. This includes AI-driven diagnostic tools, telemedicine platforms, and regulatory compliance expertise—all of which enhance service delivery without requiring significant upfront investment.
As Main Line Health continues its financial recovery efforts, exploring outsourcing opportunities may complement its cost-saving measures while supporting long-term sustainability.
