San Diego-based Sharp HealthCare will reduce its workforce and enact other cost-cutting measures, citing the industry’s challenging economic conditions — including rising costs consistently outpacing revenues, capital expenditures tied to state-mandated seismic requirements, and inadequate reimbursement from payers.
“The economic conditions in healthcare have dramatically changed over the last five years, and it has become increasingly clear that Sharp HealthCare is not immune to the related challenges,” the health system said in a news release. “To navigate these changes and maintain Sharp’s position as San Diego’s healthcare leader for generations to come, the organization has made the extremely difficult decision to reduce its workforce.”
Sharp HealthCare said the layoffs affect 315 employees, or 1.5% of the workforce, across the organization — including senior executive leadership. Senior roles in medical information and marketing are among those affected, a spokesperson told Becker’s.
The health system also is reducing hours for some roles and adjusting some positions.
“The vast majority of these positions are in nonclinical areas of the organization, resulting in minimal impact to direct patient care,” Sharp HealthCare said.
In addition to the layoffs and role adjustments, the health system will reduce senior executive compensation by approximately 15%, and President and CEO Chris Howard has elected to reduce his compensation by an additional 10%. The system will also reduce several expenses in mostly nonpatient care areas.
“Our employees are the heart of our organization, and we value each and every one of them,” Mr. Howard said in the release. “We do not make these decisions lightly nor without compassion for those impacted, and we are committed to supporting those affected during this challenging transition with career transition support, severance packages, extended healthcare coverage and other resources to assist them in continuing their careers.”
Sharp HealthCare comprises four acute-care hospitals, four specialty hospitals, three affiliated medical groups and other facilities and services.
