Thursday, June 5, 2025

Norman Regional Health System Lays Off 10% of Workforce Amid Financial Turmoil

NORMAN, Okla. — Norman Regional Health System (NRHS) announced Monday that it has eliminated 10% of its workforce, a move officials say is essential to ensure the long-term sustainability and independence of the community hospital.

In a statement to staff, NRHS cited rising operational costs, workforce shortages, and declining reimbursement rates as key factors that necessitated what it described as a “bold, proactive” restructuring.

“This is one of the hardest decisions we’ve ever had to make,” said Dr. Aaron Boyd, President and CEO of NRHS. “We are deeply grateful for the service and dedication of every team member impacted. These reductions are not a reflection of their contributions but a necessary step to ensure our system remains viable.”

Affected employees were notified in private meetings Monday afternoon, with the layoffs taking immediate effect. A former employee, who requested anonymity to protect severance and benefits, said rumors of impending cuts had circulated for weeks.

“They had one of the financial companies they hired come in and start observing what clinics were doing,” the former staffer said. “Honestly, I think it’s really crummy, especially to give such short notice.”

The employee expressed concerns about how the cuts would impact patient care, describing a system already stretched thin. “It already feels like there’s not enough time in the day to treat patients properly. It seems like it’s all about getting people in and out as fast as possible.”

Efforts by local news outlet KFOR to speak directly with Norman Regional officials were declined. City leadership in Norman and Moore said they were not notified of the layoffs in advance. Norman Mayor Larry Heikkila issued a brief statement Monday evening, saying, “I am grieved for those people who are separating from NRHS employment. It is my prayer that all of them quickly find new positions.”

Meanwhile, a group of Democratic lawmakers representing Norman—State Senator Mary Boren and State Representatives Jared Deck, Annie Menz, and Jacob Rosecrants—issued a joint statement condemning the layoffs.

“We’re deeply concerned by Norman Regional’s decision to lay off 10% of its workforce and close clinics,” the statement read. “This isn’t just about rising costs—years of overleveraging cash and poor planning brought us here. These workers didn’t fail the system—the system failed them.”

Financial instability at Norman Regional has been mounting for some time. Earlier this year, hospital leadership disclosed they were open to being sold or merged with another health system, as long as the facility remained locally governed. In the fall of 2024, the hospital’s previous CEO resigned, and Moody’s Investors Service downgraded NRHS’s bond rating to “junk” status, citing doubts about the institution’s ability to repay its debts.

“This could have been avoided through better planning and better leadership,” Sen. Boren said in an interview Monday. “The suffering and anxiety our community is going to experience weighs heavy on my heart.”

Norman Regional says it will offer transition support for displaced employees, but details on severance, job placement services, or clinic closures have not yet been made public.

As of Tuesday, inquiries to Governor Kevin Stitt and U.S. Rep. Tom Cole’s offices regarding the layoffs have not been returned.

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