OHSU Faces Financial Challenges: Job Cuts on the Horizon as Expenses Outpace Revenues

In a challenging healthcare environment, Oregon Health & Science University (OHSU) is facing financial difficulties as costs exceed revenues, particularly in wages and benefits. Despite recent controversy over non-merit-based bonuses granted to non-union staff, OHSU continues to struggle financially. In an effort to address these challenges, the university has announced that job cuts may be on the horizon.

To inform the executive leadership team on potential next steps, select senior leaders at OHSU will conduct an audit of all expenses, projects, and roles. The email signed by OHSU President Danny Jacobs and other executive vice presidents emphasized the need for structures and budgets to align with the overall strategy of the organization. The goal is to ensure optimal use of services that set OHSU apart from others and are essential to Oregon.

Despite these financial challenges, OHSU remains committed to its patient care mission and is still pursuing plans to merge with Legacy Health to become the largest employer in the Portland metro area. The organization’s leaders have stressed the importance of open communication, transparency in decision-making, and a willingness to adapt and improve in the face of adversity. They have also highlighted the need to make choices rooted in excellence as OHSU navigates through this period of change.