UC San Diego Well being laid off about 230 employees, roughly 1.5% of its workforce, on Monday, citing mounting monetary headwinds and considerations about potential coverage change in Washington.
“The choice was made solely in response to mounting monetary pressures attributable to federal impacts to well being care, regulatory uncertainty, and rising prices of offering care mixed with reimbursement charges from Medicare, Medicaid, and insurers that fail to maintain tempo with the true value of care,” a spokesperson stated by e-mail.
The College Skilled and Technical Staff, a union which represents a few of the impacted employees, stated that the layoffs affected some entrance line positions and will jeopardize affected person care.
The union stated the cuts got here regardless that College of California holds greater than $26 billion in liquid reserves, in an effort to tie the monetary well being of the medical system to the bigger tutorial system.
UC San Diego Well being careworn that it isn’t alone in conducting workforce changes, noting “reductions in personnel are being skilled by well being methods throughout the nation.”
This 12 months, PeaceHealth, Windfall, NewYork-Presbyterian Well being System, College of New Mexico Hospital, Penn Drugs, Yale New Haven Well being, Mass Common Brigham, Jefferson Well being and Lehigh Valley Well being Community have all let employees go or consolidated their management groups, citing considerations about rising headwinds and monetary challenges.
Well being methods are shedding employees as they await the ultimate fallout of Congress’ reconciliation invoice, which might slash funding for Medicaid.
The Home narrowly handed the laws late final month, which referred to as for important cuts to this system, work necessities and elevated eligibility checks. This month, Senate Republicans launched their very own model of the invoice, which included even deeper cuts to Medicaid.
Ought to the laws cross, it may have drastic impacts on suppliers’ income, consultants say. Further healthcare layoffs would doubtless comply with, warns a report from the Commonwealth Fund and the George Washington College Milken Institute Faculty of Public Well being.
Practically 500,000 healthcare employees would lose their jobs if cuts to Medicaid and meals help cross in Congress, together with these working in hospitals, doctor places of work, pharmacies and long-term care services, in line with the report.
