BLS: Hospital mass layoffs spiked in June

Officials attributed the increase to Medicaid pay cuts

Hospitals and ambulatory care centers (ACCs) in June reported a significant increase in mass layoffs, in part because of Medicaid pay cuts, according to a recent report from the Bureau of Labor Statistics (BLS).

Mass layoffs are defined as an event in which at least 50 individuals lose their jobs from a single organization in a single day. They tend to affect administrative staff, rather than clinicians, American Medical News notes.

Altogether, hospitals reported 20 mass layoffs involving at least 1,497 workers in June. That represents a significant increase over the first five months of the year, when hospital mass layoffs averaged 6.6 per month involving about 600 individuals per event.

Meanwhile, ACCs—which include physicians' offices—experienced 13 mass layoffs involving at least 1,172 individuals in June. In the first five months of the year, ACCs averaged 6.2 mass layoffs per month involving about 420 individuals per event.

According to American Medical News, affected institutions generally attributed the layoffs to Medicaid pay cuts (American Medical News, 8/6).

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