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Inova Health System to lay off over 400 employees due to COVID-19 related financial challenges

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Inova Health System to lay off over 400 employees due to COVID-19 related financial challenges

The President and CEO of Inova Health System, Dr. J. Stephen Jones, reported on April 28, 2020 that the organization must lay-off over 400 employees as hospitals cope with lost revenue and the costs of dealing with the coronavirus pandemic. 

Inova Health System had suffered recent losses in the hundreds of millions of dollars in revenue. This loss of revenue has been caused by a decline in Inova’s clinical activity due to the COVID-19 crisis. Expenses were immediately cut to meet smaller revenues, including reductions in non-clinical hires, travel, contracts, consulting, capital projects, and a reduction of the salaries of senior leaders across the board, in order to partially offset the lower revenues. Despite these measures, leadership determined that it would have to eliminate 427 positions across the organization.

It has been reported that most of the people made redundant are in what the health system describes as non-clinical management positions. Inova employs more than 18,000 people system-wide.