Layoffs Expected At Endeavor Health After Hospital System Loses $127 Million In 9 Months

EVANSTON, IL — Endeavor Health, the Evanston-based hospital group formed by the 2022 merger of Northshore University HealthSystem and Edward-Elmhurst Healthcare is reportedly considering up to 100 layoffs after posting a loss of more than $120 million in the first three quarters of last year.

Workers are expected to be notified by the end of January, with about 60 roles selected for "reduction," according to internal company documents obtained by Crain's Chicago Business.

A spokesman for the nine-hospital, 27,000-employee nonprofit health system told Crain's acknowledged the likelihood of a "relatively limited" number of job cuts and claimed the numbers were out of date and refused to provide any update numbers of expected layoffs.

Endeavor has faced significant recent financial challenges, including reporting a $127 million loss on $4.4 billion in revenue for the nine months ending Sept. 30.

A significant portion of the loss stemmed from a $453 million charge related to settling lawsuits over disgraced former physician and admitted sex abuser Dr. Fabio Ortega, whose indictment was first reported by Skokie Patch in 2018.

Higher operating expenses and difficulties in collecting payments from insurers and patients have further compounded the system’s money woes.

Citing data from a local healthcare consultancy, Crain's reported Endeavor had a third-quarter operating margin of -11 percent, compared to a national average of 4.3 percent.

Despite the financial struggles, Endeavor officials plan to invest $101 million to modernize and expand Elmhurst Hospital, adding three operating rooms, support space and a 16-bed observation unit in a two-story expansion above its cancer center.