California hospital to lay off 'over 100' employees

Henry Mayo Newhall Hospital in Valencia, Calif., is making "a little over 100" layoffs amid financial challenges, spokesperson Patrick Moody confirmed to Becker's.

Mr. Moody said the layoffs affect workers "in a wide range of hospital departments." This includes some management-level employees. The hospital, which has about 1,800 employees total, is not providing specific numbers for specific job titles or departments.

"We are unable to provide a precise number of layoffs for this reason: Some Henry Mayo services, e.g. dining services, are contracted to outside firms," Mr. Moody told The Santa Clarita Valley Signal. "Some of those firms will be reducing their staff who work at Henry Mayo, but some of those staff, instead of being laid off, may be reassigned to other hospitals or firms where those firms also provide services."

A statement from the hospital notes the financial pressure hospitals face, due to high labor and supply costs, stagnant reimbursements from payers and inflation. 

"To ensure Henry Mayo's financial viability, we have unfortunately followed hundreds of other hospitals in making a necessary though difficult adjustment to our labor force," the statement said. "Our employees showed tremendous resiliency and dedication during the pandemic, making these workforce reductions all the more difficult.

"We have made these workforce reductions in a way that prioritizes patient care and safety.  We believe Henry Mayo's long-term prospects are bright, as we continue to make important investments in patient care and expanded services. The steps we took today will help ensure we can continue to provide the residents of the Santa Clarita Valley with first-class healthcare."

Mr. Moody said the layoffs take effect in 60 days, and no further labor force adjustments are planned at this time.

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