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Medicine and Health

Mount Nittany Health Announces More Layoffs, Cutting 10% Of Staff

Outside of Mount Nittany Medical Center showing sign.
Min Xian
/
WPSU

Mount Nittany Health announced Thursday it is cutting 250 positions — about 10% of its workforce — and taking other cost-cutting steps, in the face of an expected $70 million revenue shortfall this fiscal year.

Mount Nittany is also cutting executive compensation by 10% and reducing contracted services. 

In a news release, Kathleen Rhine, Mount Nittany Health President and CEO, said: “Like most health systems across the country, we are experiencing a significant impact from the pandemic. While we must adjust, we are doing this without reducing the services the community depends on us to provide. The actions we are taking ensure that we can serve the community well today and remain strong to grow into the future.”

Mount Nittany cut about 50 positions in May in the face of fewer patients and less revenue. Medical centers in Pennsylvania have seen significant drops in revenue, as optional services were put on hold as part of efforts to prepare for and manage the COVID-19 pandemic. Mount Nittany has begun reoffering elective surgeries and other services, but will still need to lower staffing levels in the face of expected patient volume.

According to the announcement, changes that affect unionized employees will be in accordance with their contract.

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