Adventist Health is launching a multiphase restructuring plan after reporting a $224 million loss from operations in 2024. As part of this restructuring, the company is outsourcing a number of functions, including the technical stack that I was responsible for. In my 45 year career, I was involved in six different outsourcing deals. With a big bang EPIC go-live planned for September of 2026, I will be interested in following the progress of these new arrangements from afar.
Adventist Health restructures back-office services, 750 workers affected
Becker's Hospital Review, August 7, 2025
Adventist Health launched a series of initiatives Aug. 6 aimed at achieving financial sustainability, including outsourcing select business functions to vendor partners.
In a news release shared with Becker’s, officials with the Roseville, Calif.-based health system said the organization is partnering with vendors to support services within its IT, finance, human resources, talent acquisition, supply chain and accounts payable functions.
The initiative aims to “improve efficiency, enable scalable growth and reduce costs, while allowing Adventist Health to retain full management responsibility,” according to the news release. The organization also plans to accelerate the use of AI and other technologies.
Adventist Health officials said the change affects approximately 750 employees, some of whom will take on new roles with the health system or its vendor partners.
The health system also said it is implementing a return-to-office model for its corporate workforce, beginning January 2026.
Under this initiative — which health system officials said is aimed at innovation, collaboration and efficiency — most corporate-level team members will be required to work in person at the organization’s Roseville headquarters. Adventist Health expects about 800 employees to be working from its corporate offices beginning next year.
Employees at the health system’s care sites will remain in person at their community-based locations, officials said.
“Our financial health is directly tied to our ability to deliver the exceptional care our patients depend on in the communities where they live and work. While changes like these bring a significant impact to our workforce, they are a necessary response to the challenges facing our organization and industry,” President and CEO Kerry Heinrich said in the release. “Through these strategic initiatives, we will position ourselves as a trusted healthcare partner for generations to come, delivering compassionate, cost-effective care through deep expertise, a modern infrastructure and a more connected workforce.”
Adventist Health serves more than 100 communities across the West Coast and Hawaii through over 440 care sites, including 27 acute care facilities, and has a team of more than 38,000 employees, physicians, medical staff and volunteers.
No comments:
Post a Comment