Photo: ROBYN BECK / AFP / Getty Images
Children's Hospital Los Angeles (CHLA) announced on Wednesday that it will eliminate 439 positions, impacting nearly 6% of its workforce. This decision comes as the hospital faces growing financial challenges, according to a CHLA news release. The affected positions include management, support, administrative services, and clinical care roles. More than 250 positions have been completely eliminated, while 186 employees will be offered options to transfer to adjusted roles as the hospital undergoes restructuring.
Chief Executive Officer Paul S. Viviano stated, "This was a very difficult decision, and it is a deeply painful moment for our entire team." The hospital has implemented several cost-saving measures over the years, including a hiring freeze and initiatives to reduce purchasing costs for supplies. These actions follow a comprehensive review of the hospital's operational and financial strength, which has been increasingly challenged by external pressures such as Medi-Cal's reduction in reimbursement for care of California’s sickest children.
CHLA will continue to pay affected employees until their roles officially end on October 28, along with providing severance pay according to hospital policy. The hospital remains committed to delivering world-class pediatric care and advancing innovative research. Viviano emphasized the need to ensure financial viability while staying true to the hospital's mission.
KTLA reported that CHLA is one of the top-ranked children's hospitals in California and the Pacific U.S. region. The Saban Research Institute at CHLA is among the top 10 children's hospitals for research funding from the National Institutes of Health. The hospital's restructuring aims to maintain its high standards of care and research excellence despite financial constraints.