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Cedars-Sinai Medical Center lays off over 100 employees as healthcare costs increase

Cedars-Sinai

Cedars-Sinai Medical Center is terminating more than 100 employees as it aims to reduce costs amid a "challenging financial environment." 

Those affected are pharmacy technicians, administrative support staff, patient service representatives, and management employees. 

A legally required notice sent by the hospital to state officials shows that the workers being let go are not unionized.

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The layoffs total less than one percent of the workforce across Cedars-Sinai facilities, and the hospital said it primarily affects "nonpatient care positions.”

Cedars-Sinai has cited underpayments from government insurance programs and the rising cost of caring for patients as contributing factors to the gap between revenues and expenses. 

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It said: “We appreciate that these changes are difficult and painful, and we have taken every step possible to avoid them.”

The hospital has assured that it has taken every possible step to avoid layoffs but still needs to proceed to reduce costs.

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In addition to the 131 employees at Cedars-Sinai Medical Center, the hospital has also cut around two dozen employees at other related entities. 

Despite the layoffs, experts have said that it is not a signal of a hospital in trouble but instead a sign of prudent planning ahead of continued increases in labor costs and losses in the stock market.

Other California hospitals have been experiencing financial challenges, with the Beverly Hospital in Montebello filing for bankruptcy protection and Madera Community Hospital closing its doors earlier this year. 

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California lawmakers recently decided to offer a $150 million loan to financially distressed nonprofit and public hospitals.

The California Hospital Association pushed for a more significant infusion of $1.5 billion in the upcoming state budget.

The Cedars-Sinai layoffs come amid hospital systems nationwide announcing layoffs, citing growing expenses as the primary reason. 

Nonetheless, Cedars-Sinai has said that the reductions are necessary in the face of the challenging financial climate.

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