Healthcare Industry Layoff Guide: Navigating Job Loss in Medical and Health Services

If you've been laid off from a healthcare role, you're in an industry with unique dynamics. While clinical demand often remains strong, administrative and support roles face consolidation. This guide covers how to navigate layoffs in healthcare and health-adjacent industries.

Healthcare Layoff Landscape

Current Reality

Affected Areas:

• Hospital systems consolidating
• Health tech companies restructuring
• Administrative and back-office roles
• Telehealth companies post-pandemic
• Healthcare startups burning through funding

More Stable:

• Direct patient care roles
• Nursing (especially specialized)
• Allied health professionals
• Healthcare IT
• Essential administrative functions

Recent Trends

By Healthcare Sector

Hospital and Health Systems

Common Layoff Reasons:

• Merger and acquisition activity
• Cost reduction initiatives
• Service line eliminations
• Administrative consolidation

Target for Next Role:

• Other hospital systems
• Ambulatory care centers
• Healthcare consulting
• Health plans

Health Tech/Digital Health

Challenges:

• Venture funding pullback
• Profitability pressure
• Market consolidation
• Pivot from growth to efficiency

Opportunities:

• Larger health tech (Epic, Cerner)
• Health systems hiring tech talent
• Consulting firms with health practice
• Established digital health companies

Pharmaceutical and Biotech

Layoff Drivers:

• Pipeline failures
• Patent cliffs
• M&A activity
• R&D restructuring

Target Companies:

• Other pharma/biotech
• CROs (Contract Research Organizations)
• Consulting (McKinsey, LEK)
• Health systems

Health Insurance/Payers

Consolidation Ongoing:

• Merger activity
• Technology modernization
• Claims automation
• Administrative efficiency

Consider:

• Other payers
• Healthcare providers
• Health tech companies
• Consulting

Licensed Professional Considerations

If You Hold a License

Immediate Actions:

• Confirm license status and renewal dates
• Understand continuing education requirements
• Check state-specific requirements
• Document any employer-sponsored certifications

License Portability:

• Nursing Compact states (if applicable)
• State reciprocity for other professions
• Telehealth licensing considerations
• Locum tenens opportunities

Maintaining Credentials

While unemployed:

• Keep licenses current
• Complete required CE credits
• Maintain certifications
• Document any volunteer work

Job Search Strategies

Healthcare-Specific Job Boards

Clinical Roles:

• Health eCareers
• Hospital career sites
• State association job boards
• Specialty-specific sites

Non-Clinical Healthcare:

• LinkedIn Healthcare
• Indeed Healthcare
• Hospital system careers
• Built In (health tech)

Staffing and Agencies

For Clinical Professionals:

• Travel nursing agencies
• Locum tenens companies
• Per diem staffing
• Contract placements

Advantages:

• Quick placement
• Flexibility
• Competitive pay
• Explore options

Geographic Flexibility

Consider:

• Rural areas often underserved
• Different states, different markets
• Remote work in health tech/admin
• Relocation packages common

By Role Type

Clinical Professionals

Nursing:

• High demand in most markets
• Consider specialty certification
• Travel nursing remains option
• Advanced practice roles

Allied Health:

• Demand varies by specialty
• Outpatient settings growing
• Home health expanding
• Telehealth options

Physicians:

• Longer job search expected
• Locum tenens options
• Consider telehealth roles
• Partnership vs employment

Administrative/Operations

Revenue Cycle:

• Coding and billing stable
• Remote work common
• Consulting opportunities
• Technology transformation

HR/Support Functions:

• Transferable to other industries
• Consulting options
• Smaller health systems
• Professional services firms

Health Tech Professionals

Engineers/Product:

• Larger health tech companies
• Health system innovation teams
• EHR vendors
• Tech companies with health focus

Data/Analytics:

• High demand across healthcare
• Payers, providers, pharma
• Consulting firms
• Health tech companies

Severance in Healthcare

Typical Packages

Varies significantly:

• Non-profit systems: Often modest
• For-profit: More competitive
• Health tech: Tech-like packages
• Pharma: Often generous

Special Considerations

• License maintenance support
• CE credits in severance period
• COBRA critical (health professionals use insurance)
• Non-compete review

Unemployment Benefits

Healthcare-Specific

Considerations:

• Per diem/agency work affects benefits
• Document any licensing costs
• Training available in some states
• Healthcare worker programs exist

File Based On:

• State where you worked
• See our State Unemployment Guides

Transitioning Within Healthcare

Common Moves

Consulting as Option

Many healthcare professionals find consulting:

• Management consulting (health practice)
• Specialty consulting firms
• Independent consulting
• Interim management

Non-Compete Considerations

Common in Healthcare

Many healthcare roles have non-competes:

• Review your agreement carefully
• Understand geographic restrictions
• Know what's actually enforceable
• Consult employment attorney

Note: Enforceability varies by state.

Action Checklist

Week 1

• [ ] Verify license and certification status
• [ ] File for unemployment
• [ ] Review any non-compete
• [ ] Secure health insurance

Weeks 2-4

• [ ] Update resume for healthcare focus
• [ ] Apply to hospital systems and health tech
• [ ] Contact healthcare recruiters
• [ ] Consider agency/travel options

Month 2+

• [ ] Maintain CE requirements
• [ ] Expand geographic search
• [ ] Consider adjacent sectors
• [ ] Network in professional associations

Related Resources

• First 24 Hours After Layoff
• State Unemployment Guides
• COBRA vs ACA Calculator
• Severance Calculator

Key Takeaways

1. Healthcare is diverse—different sectors have different dynamics
2. Licenses need attention—keep them current
3. Clinical demand often strong—especially nursing and specialized roles
4. Health tech volatile—but skills transfer
5. Geographic flexibility helps—rural and underserved areas hiring
6. Agency work can bridge—travel, locum, per diem options
7. Non-competes common—understand yours
8. Skills transfer across sectors—payer to provider, etc.
9. Professional associations matter—network through them
10. Health insurance critical—don't go uncovered