Restructuring spurs 110 layoffs at Howard University Hospital

The financially ailing Washington, D.C.-based Howard University Hospital plans to cut 10 percent of its workforce by June 30 as part of a restructuring plan, according to Washington Business Journal.

Neither union nor nonunion employees will be spared from the layoffs, which will also effect those in management roles, according to the report. Officials did not provide the Washington Business Journal with comment on severance pay.

The job cuts are part of a strategic turnaround plan developed by El Segundo, Calif.-based Paladin Healthcare Capital, which the hospital hired in late 2014, shortly before recording a $58 million loss for the fiscal year. By fiscal year 2015, the hospital narrowed losses to $19 million, according to the report. So far for the first eight months of fiscal 2016 the hospital's losses total $10 million, according to the report.

The job cuts will help better align the ratio of staff to patients as Paladin continues to work on reducing losses and growing revenue, according to the report.

 

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