Lt. Jaime York (left) a registered nurse and training officer, shows Audrey Jolavar, 16, a student at Darnell-Cookman School of the Medical Arts, the proper way to perform a surgical hand scrub at Naval Hospital Jacksonville in this 2016 photo.
San Diego, California – UC San Diego Health announced Monday it will eliminate approximately 230 positions across its clinics and hospitals, a move it says is necessary to respond to increasing financial pressures and a national healthcare system in flux.
The cuts represent roughly 1.5% of the organization’s workforce of more than 14,000 employees and mark a significant contraction for one of the region’s most prominent healthcare providers. The decision, according to officials, is driven by a combination of federal policy impacts, rising operational costs, and reimbursement rates from Medicare, Medicaid, and private insurers that fail to keep pace with the true cost of care.
“This decision was made solely in response to mounting financial pressures,” read a statement issued by UC San Diego Health. “We are grateful for the tremendous contributions of our affected employees.”
While details about which departments or roles will be affected were not made available, UC San Diego Health said that all impacted employees will be eligible for full university benefits through existing human resources policies, including transitional career support services. A spokesperson declined to provide further information.
The announcement comes amid a broader national trend of healthcare providers reducing personnel in the face of federal budget uncertainty and continued debate over the future of government-funded healthcare programs. According to UC San Diego Health, systems across the country are confronting similar challenges as they attempt to balance quality care with long-term financial sustainability.
Despite the layoffs, UC San Diego Health is not currently operating at a loss. The organization reported a 4.1% operating margin for the first nine months of the fiscal year. CEO Patty Maysent emphasized, however, that the positive margin does not eliminate the structural challenges the system faces.
“Every single year we have had to figure out where we’re going to come up with about $150 million in order to match inflation,” Maysent said. “You can get those improvements through better payer contracts and through growth, which has always been our magic because, as long as we’re growing, it’s easier to cover that gap.”
UC San Diego Health framed the layoffs as part of a longer-term effort to preserve its ability to deliver high-quality care while maintaining stability in an unpredictable policy and economic landscape. The provider continues to employ over 14,000 staff members and says it remains committed to serving the San Diego region.
