Shanghai’s Two Well-Known Hospitals to Lay Off 30% of Staff, Causes Uproar Online

Recent waves of layoffs in various industries in China have now reached the healthcare system? The news of “layoffs at two top-tier hospitals in Shanghai” has been circulating on the mainland’s internet, sparking heated discussions. As of the time of reporting, the relevant hospitals have not publicly responded to the rumors of layoffs.

Many netizens have posted claiming that two top-tier hospitals in Shanghai are planning to lay off 30% of their staff. An informed blogger stated that Shanghai Tenth Hospital (Tenth People’s Hospital) and Tongji Hospital have started the process of downsizing. They are starting by cutting administrative and logistical positions, not renewing contracts for some administrative staff when they expire, and some employees are being transferred to lower-paying positions.

According to online disclosures, an administrative executive at the hospitals who used to have a monthly salary of tens of thousands of yuan has been reassigned to work as a guidance counselor, with their monthly salary dropping from ¥20,000 to ¥8,000. The Publicity Department, which previously had 8 staff members, now only has 3, with the remaining employees not only having to write materials but also assist in outpatient services, requiring increased efficiency. The hospitals have let go of 30% of their logistical staff, with even the hospital director’s secretary being assigned to work as a guidance counselor. Healthcare workers have been privately expressing complaints, “Administrative staff sit in offices every day, earning higher salaries than us who wield surgical blades.”

Regarding the aforementioned disclosures, a reporter from Dajiyuan called Shanghai Tenth People’s Hospital’s public phone numbers (021) 56051080 and (021) 66111140 on the afternoon of April 15th, but no one answered. The phone number for Shanghai Tenth People’s Hospital, (021) 66300588, also went unanswered.

The rapid spread of the above news has led to some public opinion pointing out that in many hospitals, the number of administrative and logistical staff is even higher than that of healthcare workers. It is well known that whether it is for treatment or medical examinations, healthcare workers are the core personnel. This round of layoffs in Shanghai’s hospitals has brought the issue of excessive personnel in the medical system to the forefront.

Some are questioning how hospitals, where patients line up every day to seek medical attention and pay, have come to the point of layoffs.

In September of last year, the Shanghai Municipal Health Commission issued a document requiring top-tier hospitals to “trim down” their administrative and logistical staff, focusing on “compression of those not directly serving patients.”

Netizens have been discussing and debating the rumor that two well-known top-tier hospitals in Shanghai are planning to lay off 30% of their staff:

“Hospitals indeed need to streamline. Many hospitals are operating like government offices with secretaries, hospital directors, vice directors, office managers, and many departments. Too many people are living off public funds.”

“The next step should be the downsizing of university logistical staff; it’s all the same with too many unnecessary staff.”

“The discrepancy between the salary of those sipping tea in offices and those wielding surgical knives is outrageous and needs to be addressed.”

“It’s long overdue. Many hospitals have far more administrative and logistical staff than healthcare workers, many of whom are there due to connections and still receive performance bonuses, eroding too much medical insurance funding.”

Founded in 1910, Shanghai Tenth People’s Hospital is a comprehensive tertiary hospital in Shanghai and a designated medical insurance unit. In 1993, it became one of the first “Grade A tertiary” comprehensive hospitals designated by the Ministry of Health and in 2000, it became an affiliated hospital of Tongji University. On June 6, 2020, Shanghai Tenth People’s Hospital became one of the teaching hospitals of Shanghai University.

Shanghai Tongji Hospital (affiliated with Tongji University) is a Grade A comprehensive tertiary hospital that integrates medical care, teaching, research, and disease prevention. It is also a designated medical insurance unit in Shanghai.