Providence Health Cuts Occupational Health Services, Impacting Thousands of Businesses
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Providence Health & Services is considerably scaling back its occupational health offerings in the Portland, Oregon, area, a move expected to disrupt services for over 5,000 employers adn possibly thousands of employees who rely on the system for drug testing, and preventative care. The closures, announced Friday, represent the latest in a series of cuts by the healthcare giant as it navigates staffing shortages and financial pressures.
The company will close four occupational health clinics – located in Tigard,Clackamas,Hillsboro,and Newberg – on November 7,according to an email obtained by The Lund Report. A senior official stated the decision is part of a broader strategic shift away from occupational health services as a “core” component of its business.
A Major Provider Steps Back
Providence has long been a leading provider of occupational health care in the region, offering a thorough suite of services including infectious disease care, occupational and physical therapy, physicals, pre-employment exams, respiratory and pulmonary services, vaccinations, vision screening, and hearing evaluations. The closures will leave a void in the market, notably for businesses that depend on the system for consistent and reliable employee health services.
The impact is expected to be widespread. Many healthcare companies, and businesses across various sectors, have routinely utilized Providence for employee drug and alcohol screening and treatment of workplace-related injuries. The closures raise concerns about access to these critical services and potential disruptions to business operations.
Staffing Shortages Cited as Primary Driver
The decision to close the clinics stems from a severe shortage of specialized clinicians. According to the company email, Providence Medical Group has lost more than half of its occupational medicine clinicians over the past two years, forcing the permanent or temporary closure of multiple facilities. “Despite our best efforts, the sustained shortage of these specialized clinicians has made it impossible to maintain operations,” the email read.
This staffing crisis comes as Providence, the largest employer in the Portland area with approximately 23,500 employees across eight hospitals and over 200 clinics in Oregon, has already undergone two rounds of layoffs as June.
Broader Cuts Across the System
The scaling back of occupational health services is not an isolated incident. On November 1,Providence will also close its pediatric intensive care unit at Providence St. Vincent Medical Center in southwest Portland, along with a heart clinic in Gresham and its obstetrics department at its hospital in Seaside. These closures signal a significant restructuring within the healthcare system.
Alternative Providers Emerge
While Providence is reducing its footprint in occupational health, several other providers operate in the Portland area. These include Concentra (with clinics at the Portland airport and on Swan Island), Kaiser permanente (primarily serving Kaiser members), Adventist Health, American Family Care, Oregon Occupational Medicine (clinics in Tualatin and Hillsboro), Northwest occupational Medicine Center (Beaverton), Spectrum Health Screening, GoHealth Urgent Care (part of Legacy Health), and Mobile Health (providing physicals and drug and alcohol screening).
Providence continues to operate occupational health clinics in Hood River, medford, Vancouver, and northeast Portland. However, the closures of the four Portland-area clinics will undoubtedly create logistical challenges for many employers and employees.
A company representative did not instantly respond to a request for comment regarding the number of employees affected by the clinic closures. The decision underscores the growing pressures facing healthcare systems nationwide, as they grapple with workforce shortages, rising costs, and evolving market demands.
