Report: Health care sector leads in job cuts, CEO turnover
September was not a good month for health care professionals.
The industry shed more than 8,100 jobs last month, the most of any sector, according to a recent report from Challenger, Gray & Christmas, a global outplacement consultancy.
During the course of this year, health care layoffs have totaled more than 41,000. Health care trails only the financial and industrial goods sectors.
Health care jobs are being trimmed because of cutbacks in Medicare and Medicaid reimbursements and lower federal spending due to sequestration, according to the firm.
To date, employers have announced 387,384 job cuts across all sectors, up 0.4 percent from 386,001 over the first nine months of 2012, according to the firm. Pennsylvania is No. 5 among states with 20,298 layoffs.
On CEO turnover, health care led all industries with 195 CEO changes through September. There have been 949 departures across all industries. Government and nonprofits was second with 133 so far this year, according to the firm.
The moves have been impacting not only hospitals and health systems, but also health technology firms, medical device companies and pharmaceutical companies.
“Many of these organizations are looking for CEOs better equipped to navigate through this period of tumult and uncertainty,” said John Challenger, the firm’s CEO.