Methodist Le Bonheur Healthcare's PATH Forward plan Includes One Percent Workforce Reduction

Sep 01, 2025 at 09:31 pm by pjeter


PATH, or Planning, Alignment, Transformational and High Performance, will create the groundwork for the healthcare system’s future as we build a strong workforce to care for our patients and support our employees.

“As part of our mission to serve the entire community, we regularly examine our service offerings and processes to ensure that they align with community needs and follow best clinical practices in a rapidly changing healthcare environment,” said Methodist president and CEO Dr. Michael Ugwueke. “Our PATH Forward reaffirms our commitment to the Memphis area.”

After careful analysis of operations and current patient volumes, the decision was made to discontinue a declining service and reduce the size of the workforce. “These changes align with our goal of maintaining long-term strength and high-quality services,” said Executive Vice President and Chief Operating Officer Monica Wharton.

Effective August 1, Methodist consolidated Obstetric services currently provided at Methodist South with those at Methodist Le Bonheur Germantown and Methodist Olive Branch Hospitals. This decision follows a consistent decline in birth volumes in the Methodist South service area and reflects a 43 percent decline in deliveries over the past five years. Currently, the hospital averages 1.3 births per day. Methodist South’s emergency department will continue to provide necessary obstetrics-related emergency care needs.

As part of this systemwide realignment, MLH is implementing a reduction in force that will affect approximately 161 Associates, or about 1 percent of its 12,000-person workforce across the system. Impacted associates who are not able to find new roles within the MLH system will be offered severance pay and career transition support.

“Our healthcare system has navigated complicated environments for more than 107 years through innovation, compassion and dedication to our workforce, our community, and the patients and families we serve,” said Dr. Ugwueke. “We believe these changes will help us continue our tradition of high-quality, compassionate care while building a foundation for the next 107 years and beyond.”

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