Prime Healthcare cuts 100+ Illinois jobs after Ascension hospital deal
ILLINOIS, UNITED STATES — Prime Healthcare has eliminated more than 100 positions in Illinois following its acquisition of eight Ascension hospitals in March.
Job cuts target non-patient roles amid $200Mn losses
Healthcare Finance recently reported that the health system indicated the cuts are aimed at eliminating duplicated or non-patient-facing roles, and affected employees have been offered comparable positions or opportunities to apply for over 900 open roles across its facilities in Illinois.
The acquired hospitals reportedly faced collective losses of nearly $200 million in the past year, prompting cost-saving measures.
Despite the layoffs, Prime emphasized that union positions remain untouched and care quality will not be impacted. The company also highlighted its $250 million capital commitment to upgrade facilities and retain talent, including through a nonprofit medical group ensuring physician eligibility for federal loan forgiveness programs. This move aims to stabilize operations while addressing the hospitals’ financial distress.
Strategic expansion in competitive Chicago market
The buyout represents an aggressive expansion into the Chicago-based healthcare market by Prime Healthcare, which now has a total of 51 hospitals in 14 states.
The transaction encompassed eight hospitals and four senior living facilities, as well as physician practices, thereby strengthening Prime’s presence in the area.
Experts regard the purchase as a strategic move to focus on a greater piece of the competitive healthcare environment in Illinois.
However, the integration has not been seamless, with job cuts reflecting Prime’s efforts to streamline operations under its care model. The health system maintains that it has already created nearly 1,000 new jobs in Illinois, striking a balance between workforce adjustments and growth.
“This consolidation affects less than 1% of the nearly 13,000 associates retained from Ascension and nearly 1,000 new jobs already created,” stated Prime Healthcare.
The long-term success of the expansion hinges on Prime’s ability to improve the financial performance of the acquired hospitals while maintaining high service standards.
