Highmark, AHN announce layoffs

Highmark Health and subsidiary Allegheny Health Network on Thursday announced layoffs in their respective operations due to the impact of the COVID-19 pandemic.

AHN officials say about 250 employees will be let go, primarily those in corporate and administrative services positions but also including some clinical support staff in the Pittsburgh-based network’s community physician practices. No staff involved in direct patient care are affected.

Highmark Health, meanwhile, is eliminating about 63 positions in Highmark Health IT and 60 additional positions in HM Health Solutions, its enterprise technology organization. About two-thirds of those positions are in the Pittsburgh area.

Both entities pointed to “operational and economic challenges related to the COVID-19 pandemic.”

AHN saw revenue drop when it complied with a mid-March state order to postpone or cancel nonemergency procedures — typically a major revenue producer for hospitals.

The network saw a sharp increase in telehealth appointments, from fewer than 50 daily before the pandemic to 4,000 currently.

HM Health Solutions layoffs were “triggered by the pandemic,” officials said, as many Americans who lost their jobs also lost their health coverage, leaving fewer remaining insured members in the plans it serves.

Affected employees at both organizations may be offered severance if eligible or may be offered other positions within Highmark Health.