Highmark Health has implemented its third round of layoffs in 2023, affecting 118 positions within the Pittsburgh-based health insurer and the provider organization. The company cited the need for adaptation and innovation to remain competitive in a rapidly evolving marketplace. Highmark Health reported a loss of $346 million in 2022 but returned to profitability in Q1 2023. The layoffs aim to streamline operations and improve efficiency, patient experience, health equity, and outcomes, while the company continues to invest strategically in growth and healthcare reinvention.
On Wednesday, Highmark Health carried out a layoff of 118 employees, affecting various positions within the Pittsburgh-based healthcare insurer and provider organization. This round of layoffs marks the third instance of cutbacks this year for Highmark Health, with previous reductions occurring in March and April. The downsizing was implemented across the entire organization, including Allegheny Health Network.
Highmark Health, encompassing Highmark Inc., associated Blue Cross/Blue Shield plans, the AHN healthcare network, and other enterprises, currently employs approximately 42,000 individuals. The company maintains significant operations in Pennsylvania, West Virginia, Delaware, and New York.
The earlier layoffs this year, which amounted to 141 employees, were initiated due to shifts in the post-pandemic healthcare landscape. Numerous healthcare systems nationwide, such as Independence Health System in Butler and Westmoreland counties, have resorted to staff reductions.
In response to the ongoing changes, Highmark Health emphasized the importance of adaptation and innovation to ensure competitiveness and future growth in the rapidly evolving marketplace. The company stated, “Change is not only constant but necessary for Highmark Health to remain an innovative company that is competitively positioned for future growth in a marketplace that is rapidly evolving.” Highmark Health further expressed its commitment to transforming operations to address the changing needs of its members and communities, while simultaneously upholding financial strength and stability, through the implementation of its Living Health model.
In terms of financial performance, Highmark Health generated $26 billion in revenue in 2022. However, the company reported a loss of $346 million last year due to challenges in the equity markets. Nonetheless, Highmark Health rebounded in the first quarter of 2023, recording a net income of $227 million, thereby returning to profitability after a $150 million loss during the same period in the previous year. AHN also exhibited improved performance in the first quarter, significantly narrowing its loss through increased discharges and observation cases.
Highmark Health attributed the need for these workforce reductions to the pursuit of operational simplification, aiming to enhance efficiency, patient experience, health equity, and overall outcomes. The company clarified its intention to continue strategic investments in growth, expansion into new markets, and the reinvention of healthcare, in alignment with its mission of delivering an exceptional health experience.
