Geisinger Health Plan to Streamline Operations: Nearly 100 Job Positions Affected

Geisinger Health Plan is trimming nearly 100 jobs as part of a major overhaul due to ongoing financial issues. Last year, the organization experienced an operating loss of $231 million. Dr. Terry Gilliland, the President and CEO, shared this news with employees, reassuring them that no additional layoffs are planned within the wider Geisinger system.

Despite these cuts, Geisinger is actively recruiting for about 2,500 positions across its network. Dr. Gilliland noted that the health plan has been challenged by fierce competition and rising costs. He explained, “Our reimbursements, especially from Medicare, don’t cover the expenses of care provided to GHP members. Drug prices are also increasing, and many of our patients in rural Pennsylvania have complex health needs.”

Founded in 1972, Geisinger Health Plan originally served local employees and residents. Today, it has grown to over 550,000 members and had around 1,200 employees prior to these layoffs. Dr. Gilliland anticipates that many of those affected will find new roles within Geisinger.

Geisinger has a significant presence in the region, operating 163 care sites, including 10 hospitals. It also educates over 5,000 medical professionals annually through the Geisinger College of Health Sciences. Recently, the organization announced a major $880 million expansion project at Geisinger Medical Center in Danville, following a nearly $900 million upgrade at Geisinger Wyoming Valley Medical Center.

In a notable shift, Geisinger was acquired in 2024 by Risant Health, a nonprofit aimed at expanding access to community-based healthcare. This acquisition has positioned Geisinger as a key player in improving care for local populations. Geisinger is also involved in efforts to save struggling hospitals in Scranton, although its exact role in potential acquisitions remains unconfirmed.

Despite positive developments in other areas, Geisinger Health Plan is still facing financial hurdles. “While we are seeing better performance this year, GHP is still operating at a loss,” Dr. Gilliland stated. He emphasized the necessity of these staff reductions to ensure the health plan remains a valuable part of the insurance market. The goal is to leverage resources effectively to combat rising healthcare costs and enhance care quality.

This situation highlights the challenges many healthcare organizations face today, especially in light of changing economic conditions and increasing demand for services. As Geisinger navigates its restructuring, it will be crucial for it to focus on both financial stability and continued patient care.

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