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Rothman Orthopaedic reduces staff in post-pandemic restructuring

The plan includes job cuts affecting 18 people as Rothman reacts to "dramatic changes in the post-pandemic world."

(From left) Tony Kuropatwa, Steven Raikin, and Alexis Williams work on repairing the fallen arch of a 50-year-old patient at Rothman Orthopaedic Specialty Hospital in Bensalem in 2019.
(From left) Tony Kuropatwa, Steven Raikin, and Alexis Williams work on repairing the fallen arch of a 50-year-old patient at Rothman Orthopaedic Specialty Hospital in Bensalem in 2019.Read moreJESSICA GRIFFIN / Staff Photographer

The Rothman Orthopaedic Institute has laid off 18 people in corporate service roles as part of a restructuring effort, officials said Monday.

Rothman has 1,800 employees across more than 40 facilities in four states. The changes to its corporate service departments are part of a geographic growth strategy the organization is looking to implement this year.

According to a spokesperson, the organization looked to move some employees whose roles were affected by the restructuring into vacant positions if they met the necessary qualifications. CEO Christopher Olivia said in a statement that it was a difficult decision to eliminate the roles “given the contributions of those affected.”

“Health care is in the midst of dramatic changes in the post-pandemic world that are the most far reaching since Rothman was founded 53 years ago,” Olivia said. “In response to spiraling costs, inflation and our need to decrease organizational expenses, we’ve implemented measures to streamline organizational efficiencies.”

Rothman avoided permanent layoffs during the early days of the COVID-19 pandemic, despite state-imposed bans on elective surgeries causing revenue to decline sharply, the Philadelphia Business Journal reported. The medical group’s partners temporarily stopped paying themselves, and staff member schedules were reduced by half.

A few other health care systems in the region have changed their leadership structures in recent months, resulting in job cuts. Thomas Jefferson University’s health system announced a restructuring earlier this year, which involved a number of job cuts. CEO Joseph Cacchione said the intention was “to better integrate Jefferson,” noting that many of the system’s 18 hospitals have been competing with each other.

Tower Health, based in West Reading, laid off 52 people from its corporate staff in November, amounting to about 13% of corporate management. The nonprofit health system recently sold Chestnut Hill Hospital and has seen other facilities close.