SEATTLE — The largest healthcare system in Western Washington announced layoffs slated for 2026 and the closure of some clinical operations amid financial challenges at the state and federal levels.
Providence Swedish posted its plans to reduce its workforce across Central Puget Sound, with impacts to Swedish First Hill, Cherry Hill, Issaquah, and Ballard hospital campuses and Swedish Medical Group.
SEIU Healthcare 1199N, a union representing 38,000 hospital workers across Washington, said 130 members were given notice they will lose their jobs with Providence Swedish in the new year.
“Somebody cleaning your room is going to be cut. Someone doing X-rays is going to be cut. MRI is going to be cut. Nurses are going to be cut,” union President Jane Hopkins told KOMO News. “I have been getting emails, calls all morning: ‘What is going to happen to my job?’”
Providence Swedish expects impacts on frontline and clinical workers, administrators, and managers across more than 100 departments.
“We have a double whammy of state-made legislative cuts and taxes on hospitals that are really significant, and they’re aimed at only the large hospitals, so those are the ones absorbing the cuts: $250 million worth per year,” Washington State Hospital Association CEO Cassie Sauer explained. “Layered onto that are the coming federal cuts, which are huge, to Medicaid.”
The WSHA and Providence Swedish highlighted ongoing financial strains felt by hospital systems nationwide, such as Medicaid cuts, state and city business occupation taxes, and commercial insurer denials.
“Are hospitals statewide prepared to react to these job losses? Can they prevent gaps in patient care?” KOMO’s Jackie Kent asked.
“No. There will definitely be gaps in patient care,” Sauer responded. “Hospitals are really working to protect the core of the hospital services, which are the emergency room services, and the inpatient hospital services where people stay for multiple days.”
She explained that other hospital systems have closed obstetric units, physical therapy and occupational therapy services, urgent care centers, mental health supports, and other services.
Providence Swedish patients can expect changes to some operations, like the closure of the Credena pharmacy at Cherry Hill starting Nov. 24, and the Swedish Weight Loss Outpatient Clinic at Issaquah on Dec. 12.
It’s why the WSHA is urging state lawmakers to reverse the cuts and taxes they put in place for hospitals last year, before they knew about the federal cuts.
“The hospitals are going to keep cutting services and cutting staff,” Sauer added.
“These are tough and complex – but necessary – decisions to address the significant economic pressures facing health care today,” Elizabeth Wako, M.D., president and CEO of Swedish Health Services, wrote in a press release. “While layoffs are never our first choice, they are needed to sustain this organization.”
The healthcare provider said it will offer impacted caregivers resources for job placement and career counseling.
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Providence Swedish noted that the workforce and operational reduction will not stop the ongoing North Patient Tower construction at First Hill.
“These reductions are part of an ongoing evaluation process,” Dr. Wako wrote. “We remain focused on our mission and values, making thoughtful decisions to navigate financial pressures responsibly. Our organization’s strength lies in its dedicated people, and together, we will emerge stronger and ready to meet future challenges.”
Providence Swedish is comprised of eight hospitals and 244 clinics.
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