OHSU Faces $133 Million Operating Loss Amid Worker Protests Over Pay and Benefits

Cash reserves held by Oregon Health & Science University decreased by $250 million for the fiscal year ending June 30, 2025, and its cash-on-hand days have slipped from 170 to 136.

Amid the turmoil of its tenuous financial situation, 8,500 OHSU workers are pressing for a contract settlement that will guarantee them a living wage and affordable health insurance.

OHSU employees seeking a living wage and better health insurance are represented by the AFSCME Local 328, a labor union affiliated with the American Federation of State, County and Municipal Employees.

The union has previously stated that the OHSU is stalling negotiations on improved benefits, and that proposals for a better wage structure are falling short of demands.

The Operating Loss for the Fiscal Year Amounts to $133 million

This week, the academic medical center reported an operating loss of $133 million, mostly attributed to the cost of drugs and supplies. Adding to that shortfall is a further $66 million for the state’s expanded low-income financial assistance program.

Operating costs added a further $37 million to the shortfall in support given by the OHSU to its partner hospitals, Hillsboro Medical Center and Adventist Health in Portland.

OHSU leaders have devised a three-pronged approach to remedy the situation. Services with sustainable margins, such as cancer care, will be expanded, new staff appointments will be reined in, and negotiations will be conducted with insurers to offer OHSU improved reimbursement rates.