Oregon Health and Science University said Friday it plans to lay off at least 500 employees in the coming months.
The academic health center attributed layoffs to financial pressures from rising labor and supply costs, according to a message sent to employees Thursday.
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The message did not specify how many layoffs are expected, but it noted the Worker Adjustment and Retraining Notification Act requires Portland-based Oregon Health to give written notice at least 60 days in advance of layoffs of 500 or more full-time positions within a 90-day period. A WARN had not been filed as of Friday afternoon.
"Despite our efforts to increase our revenue, our financial position requires difficult choices about internal structures, workforce and programs to ensure that we achieve our state-mandated missions and thrive over the long term," the message stated.
A week ago, Oregon Health announced it signed a definitive agreement with Legacy Health to create a combined system consisting of more than 100 locations, including 12 hospitals. If the deal is approved, the new system would be named OHSU Health. Oregon Health committed to investing about $1 billion into Legacy's facilities and programs, and transferring about $350 million to the Legacy Health Foundation.
Thursday's message acknowledged concerns about making those investments given Oregon Health's financial situation, saying the deal would be part of a "strategic expansion" that would grow capacity across the Pacific Northwest and would be funded with 30-year bonds.
"These capital dollars cannot be used to close gaps in our fiscal year 2025 OHSU budget or to pay our members," the message said.
Employees have been invited to a town hall next week to hear more about the proposed merger.
Oregon Health is the state's only public academic health center and has locations across Oregon and southwest Washington, according to its website.
