Childrens Hospital and Research Center Oakland, Calif., has laid off 84 employees, blaming state Medicaid cuts and a downturn economy.
Among those who lost their jobs were physicians, nurses, clinical workers and office staff. Childrens Oakland also reduced some outpatient services, and says the cuts will save about $10 million annually. The 190-bed hospital has more than 2,600 employees.
Its a challenging time for pediatric healthcare providers, Frank Tiedemann, president and chief executive officer of Childrens Oakland, said in a written statement. But challenges lead to opportunities, making this an appropriate time for us to realign programs and services that will make us more effective and financially stable.
About 67% of the hospitals patients are covered by Medicaidknown as Medi-Cal in the stateand Tiedemann said reimbursements for outpatient care are well below the cost of providing those services. On July 1, a 10% Medi-Cal provider rate cut went into effect, and California physicians, hospitals and pharmacists are suing the state to halt it. -- by Rebecca Vesely
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