Providence Health & Services, a major healthcare provider in the Pacific Northwest, plans to lay off 126 workers across Washington state starting in October. The affected positions span multiple locations—including clinics in the Tri-Cities area, Spokane, and potentially Colville—according to a WARN notice issued by the Washington State Employment Security Department.
This follows a recent announcement that Providence would eliminate 128 positions in Oregon, impacting both clinical and non-clinical roles, including home care and orthopedic therapy clinics. Facilities slated for closure include DominiCare, St. Joseph’s Hospital in Chewelah, and clinics at Spokane’s St. Luke’s Rehabilitation Medical Center and Providence Medical Park in Spokane Valley.
Providence attributes the layoffs to mounting financial pressures: reductions in Medicare and Medicaid funding, new state legislative mandates, delayed reimbursements from insurers, high labor costs, and inflation-driven supply expenses. Further cuts are expected with upcoming reductions tied to the recently passed “One Beautiful Bill” (HR-1).
These workforce reductions continue a broader restructuring trend. Earlier this year, Providence implemented hiring freezes and cut around 600 positions across its system.
Key Takeaways
| Details | |
|---|---|
| Scope of Layoffs | 126 workers in Washington; 128 in Oregon |
| Impacted Areas | Clinics across WA including Tri-Cities, Spokane, Colville |
| Primary Drivers | Funding declines, policy changes, reimbursement delays, inflation |
| Strategic Context | Continuing system-wide cost-cutting from earlier layoffs and hiring freezes |
