Providence Swedish Eliminates Nearly 300 Positions, Blames 'Economic Pressures'
- 296 positions were eliminated, amounting to 3.8% of the total workforce.
- The eliminations affect multiple Central Puget Sound locations, including First Hill, Cherry Hill, Issaquah, and Ballard hospitals.
- The president and CEO of Swedish Health Service blamed the cuts on the "significant economic pressures facing health care today."
Providence Swedish, a large nonprofit healthcare system in Western Washington, just announced a plan to eliminate nearly 300 positions—roughly 3.8% of its total workforce—across several facilities in the Central Puget Sound region.
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The cuts will impact Swedish campuses in First Hill, Cherry Hill, Issaquah, and Ballard, as well as the Swedish Medical Group. Both union-represented roles and non-represented caregivers' jobs will be eliminated, along with vacant positions that won’t be filled. According to Providence Swedish, over 100 departments will see changes, spanning clinical staff, administrative roles, support services, and management. The Credena Health Pharmacy and Swedish Weight Loss Outpatient Clinic will also be closed.
The changes are expected in early 2026, aiming to provide affected employees time to adjust and plan their next steps.
What Prompted the Cuts
Elizabeth Wako, M.D., president and CEO of Swedish Health Services, blamed the "tough and complex" decisions to eliminate jobs on the "significant economic pressures facing health care today," adding that the cuts were necessary.
“While layoffs are never our first choice, they are needed to sustain this organization," she said in a statement.
Providence Swedish also announced that recent changes at local and national levels impacted their decisions, including:
- State and federal Medicaid cuts
- Increased costs from state legislative policies
- State and city business and occupation taxes
- Commercial insurer denials
- Declining procedural volumes
- Changes to "safety-net programs" from H.R.1 (the One Big Beautiful Bill Act)
Local nursing unions have criticized the move, noting that some healthcare systems are using the "disruptions" of legislation to make cuts that could affect patient care.
While the cuts are planned, Providence Swedish's current construction project in First Hill will continue. The 12-story North Tower is tentatively scheduled to open in the Fall of 2027 and will feature:
- 24 new 'advanced' operating suites
- A 31-room emergency department
- 72 acuity-adaptable intensive care unit (ICU) beds to ensure flexibility
- New centralized imaging facilities
- 'Supportive, healing spaces'
- Connection to the skybridge over Marion Street
- Underground parking, retail areas, and green spaces
- Shell space on several floors for future expansion of bed floors or procedural space
According to Providence Swedish's website, the North Tower project is to be followed by a second construction project, Block 95 Tower, which they describe as the 'future of outpatient care.'
A Larger Trend
The Providence Swedish's decision may reflect a broader trend in some healthcare systems facing financial strain, which could ultimately affect nursing positions as well.
For instance, a 2023 American Hospital Association report found that over half of U.S. hospitals operated with negative margins in 2022, with labor costs as the largest expense. Labor expenses per adjusted discharge rose 19.1% from 2019 to 2022, outpacing revenue growth. This trend has forced many healthcare organizations to reevaluate staffing models and operational strategies to remain viable.
As a health system, Providence Swedish has been working through financial challenges in its other locations, particularly in Oregon, where it cut 600 jobs this summer in a restructuring effort that came after the system saw a $644 million operating loss in 2024.
The efforts seem to be working, as Providence just announced a 0.3% profit margin in its most recent quarterly financial report.
The Reaction
The reaction to Providence announcing the layoffs on social media does not seem to be positive, as many comments criticized the healthcare system for eliminating the roles of people providing the hands-on care.
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