STATE COLLEGE — Mount Nittany Health has announced a restructuring due to the coronavirus that will result in approximately a 10 percent reduction in staff or about 250 layoffs.

As it continues to re-open clinical services, including elective surgeries, emergency care, diagnostic services and physician practices, the health system is expecting a $70 million revenue shortfall for its current fiscal year ending June 30, resulting in the need for restructuring, according to a statement releaed by the medical center.

To address this shortfall, the system will continue to adjust staffing to align with current and expected patient volumes, which will result in approximately a 10 percent reduction in staff, or approximately 250 positions. The layoffs are part of an ongoing restructuring operations and positions that included the announcement in May that 50 management positions were being eliminated.

Other changes include implementing a 10 percent reduction in executive compensation and reductions in spending on contracted services and supplies in the coming year. The health system does not plan to reduce programs and services and will maintain current nurse to patient and nursing assistant to patient staffing ratios.

“Our priority remains serving the community with high quality care,” said Kathleen Rhine, Mount Nittany Health President and CEO. “Like most health systems across the country, we are experiencing a significant impact from the pandemic. While we must adjust, we are doing this without reducing the services the community depends on us to provide. The actions we are taking ensure that we can serve the community well today and remain strong to grow into the future.”

“Changes that impact people are never easy nor taken lightly, added Rhine. “We recognize the impact this will have on dedicated employees who are on the front lines of serving the community. We deferred it as long as we felt we could. We have a strong team and a strong mission and I am confident in our ability to successfully adjust our operations.”

“Mount Nittany Health is an important asset for this community,” said Mount Nittany Health Board Chair Marty Bradley. “We must adjust our operations and costs in response to reduced revenues if we are to remain a strong and vital asset for our community and continue providing outstanding healthcare.”

Actions affecting unionized employees will be in accordance with their contract. Mount Nittany Health will also extend separation support to all affected non-union employees.

Mount Nittany Health, a health system located in State College, consists of Mount Nittany Medical Center, a 260-bed acute care facility, and Mount Nittany Physician Group, a staff of more than 170 providers who offer primary and specialty care services at a growing number of offices throughout central Pennsylvania.