The layoffs, which constitute 1.3% of the workforce, will impact all levels of the organization, ranging from senior executive leadership to reduction in hours.
SAN DIEGO — Sharp HealthCare will lay off 315 employees due to economic challenges, the organization announced on Monday.
In its press release, the organization listed “rising costs consistently outpacing revenues because of increasing labor costs; capital expenditures related to state-mandated seismic requirements; and inadequate reimbursement from Medicare, Medi-Cal and commercial payers” as the reasons for their financial challenges.
“The daunting financial headwinds health care systems nationwide have been facing are not letting up,” Brett McClain, Sharp HealthCare Chief Operating Officer, said in the release. “While workforce reductions are always our last choice, we had to act now to align our resources with strategic priorities, navigate the financial challenges in health care, and ensure long-term organizational sustainability.”
The layoffs, which constitute 1.3% of the workforce, will impact all levels of the organization, ranging from senior executive leadership to reduction in hours and role adjustments for some positions.
“The vast majority of these positions are in nonclinical areas of the organization, resulting in minimal impact to direct patient care,” the release said.
In addition to the layoffs, the senior executive compensation will be reduced by around 15%, and Chris Howard, the Sharp HealthCare President and CEO, has elected to reduce his income by an additional 10%. The organization said that several expenses, mostly in nonpatient care areas, will also be reduced “so that Sharp can continue to provide full-service, high-quality care to San Diegans.”
Howard called these layoffs “unfortunate, but necessary.”
“Our employees are the heart of our organization, and we value each and every one of them,” Howard said in the release. “We do not make these decisions lightly nor without compassion for those impacted, and we are committed to supporting those affected during this challenging transition with career transition support, severance packages, extended health care coverage and other resources to assist them in continuing their careers.”
Despite the layoffs, Sharp assured patients that there would be no impact on the level of care they could receive.
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