Spire to cut 400 hospital jobs in major operational overhaul

Spire Healthcare has announced plans to cut around 400 hospital-based roles as part of a wide-ranging overhaul of its workforce structure aimed at improving efficiency and standardising operations across its network.

The London-listed private hospital group today said the proposals were part of a multi-year transformation and digitalisation strategy, alongside a broader programme of cost savings. Staff affected by the move have entered a formal consultation process.

The planned redundancies – which represent roughly 2.5% of the workforce across the entire Spire Group – follow a review of hospital staffing models to align teams around consistent roles and simpler management structures, said Spire. In addition, it plans to rebalance its workforce with a different mix of permanent and bank staff to improve flexibility.

The overhaul will affect both clinical and non-clinical roles. A Spire spokesperson told HM that the planned redundancies would vary by site but would impact multiple departments, including wards, theatres, outpatients, physiotherapy, pharmacy and imaging.

In a statement, Spire said the proposals had been tailored to each hospital’s needs, reviewed for clinical quality, and shared with the Care Quality Commission, Health Inspectorate Scotland and Health Inspectorate Wales. It added that there would be no reduction in patient-facing clinical hours.

Spire announced EBITDA of £260m on revenue of £1,511.2m in FY24 as demand continued to rise across payor groups and its diversification into primary care services started to bear fruit. However, the London-listed group has long been targeting efficiency savings. In a trading update earlier this month, it said it was on course to meet 2025 guidance and deliver ‘at least £30m in efficiencies’, with benefits weighted towards H2.

Chief executive Justin Ash said the changes were designed to ensure the company could continue to deliver safe and efficient care while remaining financially resilient.

‘Transforming our business to deliver ever more safe and efficient care is central to how we run great hospitals, develop new services and deliver strong financial performance that allows us to invest in the future,’ he said.

‘The proposals we have shared today will help us be more consistent and effective in the way we set ourselves up to deliver outstanding, personalised care and service for our patients, payors and consultants.

‘Decisions involving our colleagues are not ones we take lightly, but they are necessary to ensure our hospitals are consistently set up to deliver high-quality care with the flexibility and responsiveness needed for the future. We are fully committed to clear and open communication, fair consultation and support for all affected colleagues.’

The company is also proposing a further reduction of around 40 administrative roles as it expands the use of centralised Patient Support Centres. New centres have been opened in Cardiff, Seaham and Brentwood, and a consultation is underway to shift additional administrative functions to these hubs.

Spire said the move would improve calls handling and increase appointment bookings while freeing up hospital space for clinical use. Staff impacted by the changes will be offered the opportunity to move to alternative roles where possible, the company said.

‘We are fully committed to clear and open communication, fair consultation and support for all affected colleagues, including a range of support to find their next role, inside or outside Spire and wellbeing support,’ added Ash.