Providence announced it is laying off 128 staff, the second time this year it has eliminated positions in Oregon.

The people being laid off include registered nurses, CNAs, and researchers. Providence Oregon Chief Executive Jennifer Burrows said the layoffs involve small numbers of staff in many locations.

“The majority of changes are decreasing team sizes,” she said. The exception is a wound care clinic in Newberg, which Providence is planning to close.

Providence employs more than 125,000 people in seven states with headquarters in Renton, Washington and Irvine, California. On Thursday, it also announced layoffs and program changes in Washington, primarily in Spokane and the inland Northwest.

The layoffs are part of an organization-wide restructuring Providence launched last year after operating in the red for multiple years coming out of the COVID-19 pandemic.

In a press release, Providence said it is bracing for the spending cuts set up by President Trump’s recently passed domestic policy bill.

“With the passage of H.R. 1 expected to bring deeper cuts to Medicaid and other safety net programs in the near future, Providence is continuing to take proactive steps to ensure long-term financial sustainability,” the statement said.

According to the Kaiser Family Foundation, the bill cuts Medicaid spending by more than $900 billion over a decade. But most of those cuts won’t take effect until the end of 2026.

Burrows acknowledged that the current round of layoffs in Oregon is not a direct result of the bill.

“We have been struggling financially for some time,” she said.

Providence’s hospitals and clinics in Oregon have lost roughly $100 million annually for four years running. Burrows said layoffs and cuts will continue until Providence’s Oregon operation is breaking even.

The big bill, she said, means it will likely be harder to reach the break-even point, and more services may be at risk.

“We are going to have to continue this work longer than we anticipated,” Burrows said.

Burrows said Providence has asked state officials for help to blunt the effect of future cuts, for example, making it possible for competing hospitals to work together to staff maternity units and then direct patients to available beds, similar to the current trauma system.

Obstetrics and maternity care is notoriously expensive for hospitals to provide and is often one of the first service lines to get cut when providers are in the red, though regulations in Oregon require some hospitals to provide the service.

The Oregon Nurses Association, meanwhile, argued that the layoffs are part of a pattern of Providence’s disinvestment in Oregon’s health care system.

“These cuts don’t just affect workers, they directly threaten the quality and safety of care in our communities,” ONA spokesperson Myrna Jensen said in a provided statement. “Layoffs will worsen Providence’s ongoing staffing issues, which leads to unsafe patient loads and burned-out caregivers.”

In recent presentations to investors, Providence has highlighted growth in patient volumes and its intent to serve more patients.

Hospital admissions, physician visits, and outpatient surgeries all increased between 2023 and 2024.

Burrows said the current layoffs are being driven by the difference between what it costs to provide care and how much reimbursement Providence gets from insurers.

Nurse wages in Oregon are the highest or second-highest in the country, adjusted against the cost of living, she said, while insurance reimbursements have lagged behind.

The nurses’ union said it was unfair and dishonest for Providence to blame the layoffs on nurse wages, while Providence’s top executives earn millions.

Providence has also cited state laws that have added to its operating costs as a factor. In 2023, in response to concerns about burnout and safety, Oregon passed a law that mandates minimum nurse-to-patient ratios, adding significantly to the cost of staffing, according to Providence.

Last year, the state also started requiring hospitals to pre-screen patients and apply charity care discounts to all large bills, instead of leaving it up to patients to apply for a reduction. Hospitals supported that legislation, but have struggled to implement it.

The new requirements added roughly $50 million to the cost of Providence’s charity care in Oregon in just the final six months of 2024.

News Source : https://www.opb.org/article/2025/08/07/oregon-providence-hospital-staff-health-care-layoffs-jobs-nurses-researchers/