Forbes April 2, 2025
Richard Menger MD MPA

Hospitals across diverse markets in the United States are terminating non-clinical personnel as they confront intensifying financial pressures. Escalating operational costs, persistent inflation, shortages of clinical staff, and contracting fiscal margins are squeezing healthcare institutions nationwide.

These layoffs coincide with a post-COVID market recalibration, where reimbursement rates struggle to keep pace with inflationary trends. Reductions in workforce are occurring not only at prestigious academic referral centers like Massachusetts General Hospital but also in smaller rural facilities. Compounding the issue, the Trump Administration recently disclosed plans to cut 10,000 federal health workers, amplifying the sector’s challenges.

In smaller towns and counties across the nation, where hospitals often serve as linchpins of the local economy,...

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