Cedars-Sinai Medical Center has eliminated the positions of 131 employees and cut about two dozen other jobs at related Cedars-Sinai facilities, a spokesperson confirmed via a statement shared with Becker's.
The Los Angeles-based organization said reductions represent less than 1 percent of the workforce and apply to management and non-management roles primarily in non-patient care jobs. Affected workers include pharmacy technicians, administrative support staff, patient service representatives and management employees, according to the Los Angeles Times.
"We appreciate that these changes are difficult and painful, and we have taken every step possible to avoid them," Cedars-Sinai said. "We must never lose sight of the impact on each affected individual who has committed their talent and time to make Cedars-Sinai a stronger and better organization. Treating everyone who works at Cedars-Sinai with dignity and respect are central elements of our values."
The reductions are a result of various challenges, including a growing gap between revenue and expenses due to underpayments from government insurance programs and increased care costs, among other factors, Cedars-Sinai said.
"We have met this challenge head-on, redesigning how we approach our work, developing new care models and identifying other efficiencies," the organization said. "Still, we must take additional steps to reduce our costs while protecting our highest priority — delivering excellent, compassionate care to those who need us."
Moving forward, Cedars-Sinai said its journey "will be defined by the ability to recognize and successfully adapt to the evolving financial landscape. In every decision, we will put the needs of our patients first."
The layoffs at Cedars-Sinai come as healthcare leaders in California have warned about the financial challenges facing hospitals in the state and called for financial relief from the state legislature. State lawmakers recently approved a $150 million loan program for distressed nonprofit and public hospitals.