Children’s Hospital Los Angeles is laying off 5.8% of its workforce in Southern California as part of a strategic realignment triggered by rising costs and budget cuts in Medicaid and Medi-Cal healthcare programs.
“Due to declining federal and state reimbursements, emerging policy changes affecting funding, and escalating costs of healthcare delivery, Children’s Hospital Los Angeles (CHLA) must take steps to secure the hospital’s long-term viability for millions of children in need of care,” wrote Mamoon Syed, chief people officer with Children’s Hospital in a recent letter filed with the state’s Employment Development Department.
The hospital plans to cut 439 positions out of nearly 7,550 throughout its healthcare system by Oct. 28.
CHLA chief executive officer Paul Viviano said in a recent statement that the layoffs were “necessary to ensure CHLA can continue to survive in this uncertain climate.”
The CHLA statement said that 253 of positions are permanent layoffs while the remaining 186 people will be offered the option to transfer to “adjusted roles” at facilities in Arcadia, Bakersfield, Encino, Santa Monica, South Bay, Valencia and its main campus at 4650 W. Sunset Blvd. in East Hollywood.
Positions include nurses, occupational therapists, psychiatric social workers, respiratory care practitioners, financial consultants and a language and cultural specialist.
Medicaid, funded jointly by states and the federal government, provides health coverage to eligible low-income adults, children, pregnant women, elderly adults and people with disabilities. Medi-Cal is California’s Medicaid program, a health insurance program that provides healthcare services for low-income individuals.
In June, executives at CHLA announced that its Center for Transyouth Health and Development, which provides gender-affirming care, including hormone therapy and surgeries, would close this summer.
CHLA had been one of the oldest, largest public providers of gender-affirming care, especially for lower-income patients, in the United States.
The EDD filing was made as part of the federal Worker Adjustment and Retraining Notification Act — commonly referred to as WARN, which are required when an employer lays off more than 50 employees. All affected employees are notified at least 60 days before their terminations are scheduled to occur.
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