Geisinger eliminating nearly 100 Geisinger Health Plan positions

Geisinger is eliminating nearly 100 Geisinger Health Plan positions as part of a restructuring that comes as the system’s health insurance operation faces financial headwinds, officials said Tuesday in an internal administrative announcement.

“There are no staff reductions elsewhere at Geisinger,” system President and CEO Dr. Terry Gilliland said in the message sent to all Geisinger employees and reviewed by The Times-Tribune. “In fact, we’re currently recruiting for approximately 2,500 open positions systemwide, and expect many impacted GHP employees to transition into new roles within Geisinger.”

But Gilliland’s message also notes financial challenges that Geisinger Health Plan has grappled with in recent years, including a $231 million operating loss last year. It’s still operating at a loss despite performing “much better” this year, per the internal correspondence.

“GHP is an integral part of our system, and it’s critical that we achieve financial stability,” it reads. “These staff reductions are necessary to ensure that GHP continues to be a valued local participant in the health insurance market which, unfortunately, is dominated by large competitors.”

The message also provides context for what’s contributing to the aforementioned fiscal challenges, noting reimbursements, particularly Medicare reimbursements, are insufficient to cover the cost of care Geisinger Health Plan members receive. It also notes the rising cost of prescription drugs and that “the people we care for in rural Pennsylvania tend to be older and sicker with complex healthcare needs.”

Geisinger Health Plan employed about 1,200 people prior to the nearly 100 layoffs, which are immediate and affect non-union jobs, Geisinger said in response to questions submitted by the newspaper. Geisinger employs approximately 29,000 people total across the system’s various operations, it said, noting “most” of the employees whose positions were eliminated will have the opportunity to transition to other Geisinger jobs.

“The good news is that when we combine the resources and capabilities we have in our clinical enterprise with GHP, we have the opportunity to change the trajectory of GHP’s rising cost of care, allowing us to continue to offer high-quality, affordable care to the people of rural Pennsylvania,” Gilliland’s internal message reads.

Geisinger Health Plan began in 1972 as a “rural, prepaid health plan offered as a pilot program to Geisinger Medical Center employees” and residents of the five counties surrounding the Danville hospital, per Geisinger’s website. It received a certificate of authority to operate as an HMO in 1985, and currently provides a “variety of coverage options to fit the needs of over 550,000 members,” the website notes.

“Please lean in and support GHP and our colleagues who work there,” Gilliland’s message concludes. “Together, we can ensure our integrated healthcare delivery system continues to work for our patients, members and community.”

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