Penn Highlands Healthcare announces layoffs
Thirty-six jobs will be cut at the Mon Valley facility and in Connellsville.
Some staff members at two regional hospitals operated by Penn Highlands Healthcare have been let go.
On Wednesday, the Clearfield County-based health care system announced it would cut its workforce by about 36 people at Penn Highlands Mon Valley in Carroll Township and Penn Highlands Connellsville, citing ongoing financial struggles post COVID-19.
“The post-pandemic years have been very difficult for health systems across the United States — especially in rural communities,” Penn Highlands said in a statement. “Hospitals continue to struggle largely due to staffing and recruitment issues, inadequate reimbursements, soaring inflation and record increases in the cost of medication and equipment.”
According to a recent financial report, through the first three quarters of fiscal year 2025, Penn Highlands recorded an operating loss of $24.1 million compared to an operating loss of $16.5 million during the same period last year.
The system attributed the increased operating loss to its State College, Pa., hospital that opened in July, and ongoing challenges with staffing that resulted in rate increases, premiums, agency and other expenses.
Investment in Penn Highlands State College Hospital represented a $12.5 million operating loss through the nine months that ended March 31.
“To offset these issues, Penn Highlands Healthcare has eliminated or renegotiated contracts, positions have been reduced through attrition, management has been restructured and office locations have been consolidated,” the release states.
Despite these efforts, the company said Penn Highlands Connellsville and Penn Highlands Mon Valley continue to experience significant deficits.
The cuts are designed to improve the financial stability of both locations and position them for long-term strength and future growth.
“We had to make an extremely difficult decision and today we are announcing a staff restructuring,” the statement said.
The restructuring will impact approximately 36 positions at Penn Highlands Mon Valley, including 26 in leadership and non-clinical areas.
Penn Highlands Healthcare has approximately 6,200 employees in 150 locations throughout 26 counties in Pennsylvania. Its operations include community medical buildings, outpatient facilities, surgery centers and physician practices.
The system has 849 physicians and 427 advanced practice providers on staff.
According to the company, Penn Highlands Connellsville and Penn Highlands Mon Valley will continue to employ more than 1,250 people and provide an economic impact of nearly $319 million across the region.
No services will be affected nor will this impact patient care, the company stated.
“Patients will continue to receive the top-quality, advanced and safe care that they expect from Penn Highlands Connellsville and Penn Highlands Mon Valley,” the statement said. “In addition, the recruitment of key clinical positions and providers will continue along with other growth initiatives.
“The Penn Highlands Healthcare Human Resources Department will take every step possible to work with each individual impacted by this restructuring to help identify open positions within the health system that may be a match for their skills. All members of Penn Highlands Healthcare make important contributions, and those impacted by this decision are no exception.”
Penn Highlands Healthcare was officially formed in 2011 and is comprised of nine hospitals. Penn Highlands Brookville, Penn Highlands Clearfield, Penn Highlands Connellsville, Penn Highlands DuBois, Penn Highlands Elk, Penn Highlands Huntingdon, Penn Highlands Mon Valley, Penn Highlands Tyrone have served area communities for more than 100 years.
Penn Highlands State College is a new state-of-the-art hospital that opened in 2024.
The health system also offers home care, long-term care facilities and residential senior living communities, as well as durable medical equipment companies and retail pharmacies.
