Los Altos Hills, Calif.-based Daughters of Charity Health System is cutting 4 percent of its workforce following the collapse of its proposed sale of six hospitals to Ontario, Calif.-based Prime Healthcare Services, officials told the San Francisco Business Times.
That equates to about 280 jobs out of about 7,000 at Daughters of Charity, according to a spokeswoman for the Catholic health system.
Layoffs will occur at a number of the system's California hospitals. Twenty management and support jobs will be cut at Seton Medical Center in Daly City and Seton Coastside satellite in Moss Beach. O'Connor Hospital in San Jose and Saint Louise Regional Hospital in Gilroy will have 50 jobs eliminated. In addition, 44 jobs will be cut at St. Vincent Medical Center in Los Angeles, and 48 jobs will be eliminated at St. Francis Medical Center in Lynwood.
The spokeswoman told the San Francisco Business Times that some of the jobs have already been cut, while others will be cut over the next several months.
In a statement, Daughters of Charity officials said the workforce reductions are being implemented as the system works to reduce expenses, stabilize finances "and better position our hospitals while we search for a new buyer," according to the report.
The reductions "should restore our hospitals to break-even status financially," Daughters of Charity added.
Other changes at Daughters of Charity hospitals include reconfiguration or closure of clinical units, including the third floor obstetrics and nursery units and a cardiopulmonary rehab unit at Seton Medical Center, according to the report. Changes also include cutting the labor and delivery unit and pediatric services at Saint Louise, as well as reconfiguring the pediatrics unit, cutting the neonatal intensive care unit and shutting down the outpatient physical therapy department at O'Connor.
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