Sparrow Hospital announces hundreds of layoffs

Hundreds of workers at Sparrow Health System are being laid off.
Published: Sep. 29, 2022 at 3:08 PM EDT|Updated: Sep. 29, 2022 at 5:05 PM EDT
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LANSING, Mich. (WILX) – Hundreds of workers at Sparrow Health System are being laid off.

The Lansing-based hospital announced the layoffs Thursday. In a news release sent to News 10, Sparrow said it lost $90-million dollars during the first six months of 2022. “Expenses have risen across all categories, including supplies and salaries, wages, and benefits, while patient volumes have declined, and the cost of contracting agency labor has skyrocketed.”

Sparrow said the staff reductions include management, non-patient care, and clinical jobs in areas that are projected to remain down.

“These problems aren’t unique to our system,” Sparrow said. “Most health systems in the country are facing similar challenges, including many in Michigan.”

Sparrow said salaries, wages, and benefits are up 35% compared to pre-COVID 2019 levels. The hospital said nationwide staffing shortages have forced it to use agency nurses to meet patient needs – at a projected cost of $50-million this year.

The union representing nurses and other healthcare workers at Sparrow said it has been informed of the job cuts.

The Professional Employee Council of Sparrow Hospital-Michigan Nurses Association “has been informed of hundreds of job cuts being rolled out across Sparrow Health System”, said Kevin Glaza, PECSH-MNA union Vice President. “Some of these cuts will affect Professional Employee Council of Sparrow Hospital-Michigan Nurses Association, which represents about 2,200 registered nurses and healthcare professionals. Right now, we are in the process of making sure that our contractual protections are followed and advocating for the best result for each of our members. We are also very concerned about the impact that these cuts could have on patient care and our community. We are using the rights we have as a union to try to mitigate the potential consequences to patient safety as much as possible. The situation is evolving, and we hope to learn more soon from Sparrow about how they plan to address the already worsening staffing crisis while laying off caregivers.”

“Sparrow will adapt to this changing world and will do so quickly,” said Sparrow in its news release. “We will fundamentally change how we operate our business and how we are structured so that we are positioned to serve our community for another 126 years.”

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