Health System Execs Refuse to Cut Workforce Investments

Leaders focus on career pathways, retention despite rising labor costs

Published on Feb. 25, 2026

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As hospitals nationwide contend with margin pressure and persistent workforce shortages, 56 health systems were named to Forbes' annual list of America's Best Large Employers. Leaders from several of those organizations told Becker's they have deliberately protected — and in some cases expanded — investments in leadership development, career pathways, employee well-being and benefits, even as labor costs rise.

Why it matters

Rather than scaling back workforce spending, the executives described doubling down on internal talent pipelines, burnout prevention, employee recognition and programs designed to strengthen retention and engagement. This approach aims to maintain quality, safety and patient experience despite financial headwinds facing the healthcare industry.

The details

Health system leaders cited a range of workforce investments they refused to cut, including apprenticeship programs, leadership development, well-being initiatives, tuition assistance, internal mobility, and celebrations to boost morale and culture. They view these people-focused investments as essential to sustaining high-quality care, rather than discretionary expenses to be reduced.

  • The article was published on February 25, 2026.

The players

UW Health

A health system based in Madison, Wisconsin that has created innovative 'earn as you learn' apprenticeship programs across key clinical roles.

Cooper University Health Care

A health system in Camden, New Jersey that continues to invest in leadership development programs, including formal training, individual development plans, and internal coaching.

Children's Hospital of Philadelphia

A children's hospital that has preserved and strengthened its employee well-being and development initiatives, including tuition assistance and clear career pathways.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

The takeaway

Health system leaders are prioritizing investments in their workforce, including career development, well-being, and retention initiatives, despite financial pressures. They view these people-focused strategies as essential to sustaining high-quality care and navigating workforce challenges, rather than as discretionary expenses to be reduced.