Memorial Sloan Kettering to cut the staff

Diving brief:

• Memorial Sloan Kettering Cancer Center will reduce less than 2% of its workforce this fall while the system is fighting the increase in spending.
• The system said it reduced jobs to combat a “structural deficit”, in which medication, supplies and labor costs have exceeded income growth.
• Details of the cuts are still being finalized, said a spokesperson for the health system. The affected employees will be informed between the end of September and November 15.

Diving insight:

MSK said that it had implemented programs, a decrease in work with consultants and won certain open roles to reduce costs. However, the health system does not plan to implement a complete hiring gel.

The health system said that its decision to reduce staff is due to wider, wider industry winds.

“In recent years, unprecedented changes have reshaped the health industry, including the cost of the binks of drugs, supplies and labor, which exceed income growth,” said the system. “These realities mean that MSK – like hospitals across the country – now faces an annual structural deficit that we will have to approach in progress.”

Memorial Sloan Kettering is the last to carry out layoffs in the middle of an uncertain economic climate.

The layoffs and restructuring of the workforce increased this year, with Providence, NewYork-Prresbyterian Health System, the University of New Mexico, Penn Medicine, Yale New Haven Health, General Brigham, Jefferson Health and Lehigh Valley Health Network providing their teams in recent months growing financial challenges.

Analysts of Kaufman Hall and West Monroe told Healthcare Dive last month that they expect additional health systems to reduce the staff in the rear half of 2025, because they face the increase in costs, the reimbursement challenges and the impacts of “The One Big Beautiful Bill Act”, which includes reductions in health care programs.

According to Data from the Bureau of Labor Statistics of the Bureau of Labor Statistics. Health care added 31,000 jobs in August, below the average of 12 months of 42,000, which suggests that the labor market could cool slightly.

Unemployment at the national level has reached its highest level since 2021 to 4.3%.