Sutter cuts 200 positions in restructuring, signals more job losses could come this year
Sacramento-based Sutter Health is eliminating roughly 200 positions from its non-clinical workforce, but signaled that these may not be the only layoffs in 2021 as it undertakes a restructuring process.
“Our work will continue into 2021 as we look at ways to eliminate variation, align resources and become much more efficient with our indirect costs so we can best serve our patients and communities,” company leaders said in a statement sent to The Sacramento Bee. “This includes department restructures, as well as closing some programs or reducing certain services, particularly where patient demand has been declining.”
Sutter spokesperson Amy Thoma Tan said that, while the company has identified 200 positions it will eliminate, fewer people may actually lose jobs since some of them will be redeployed to fill positions in departments that have higher demand.
The company, which employs more than 53,000 people in Northern California, is also doing some hiring “in clinical areas in high demand, including currently filling roles in our vaccine clinics,” Sutter leaders said.
They also said they must continue to make “difficult but important decisions” to meet new financial challenges from COVID-19 and recognize shifts in patient demands for care that have existed for some time.
In November, the company reported a loss from operations of $48 million in its third-quarter financial report, a period in which rising investment income helped the company stave off an operating loss. In that report, company leaders said “adjusting our entire integrated network to rapidly respond to COVID-19 continues to be incredibly challenging and costly.”
In prior quarters, the health care giant also had sizable settlements in lawsuits related to anti-competitive practices and financial accounting for Medicare. None of the settlements assigned any wrongdoing to Sutter.
This story was originally published January 28, 2021 at 5:00 AM.
