Kaiser Permanente

Oakland, CA
kaiserpermanente.org
Healthcare

Layoff Date:

May 5, 2021

Laid Off Employees:

200

Laid Off Percent:

Source: Mercury News
More than a year into a deadly pandemic that has pushed health care workers to the brink, Kaiser Permanente announced last week it was laying off more than 200 workers. Earlier this year, Sutter Health made similar reductions. The job cuts "which come just as doctors, nurses and other employees who help keep hospitals and clinics running are finally allowing themselves to feel hopeful the worst of the coronavirus pandemic is in the past" have prompted backlash from unions and others. But COVID-19 also has dealt a financial blow to many health care providers, raising the question of whether more layoffs are on the horizon. "I certainly believe so," said William Padula, a professor of pharmaceutical and health economics at the University of Southern California. "Hospitals never operate on a very large margin," Padula said. "If their revenue drops 20 or 30%, as it could have this past year, then obviously they need to cut costs to maintain an operating margin that keeps them able to serve patients in general."
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