Kaiser Permanente Lays Off 530 Union Workers in Southern California
Kaiser Permanente officials have confirmed that the group has laid off 530 union employees in Southern California, the Los Angeles Daily News reports (Tasci, Los Angeles Daily News, 11/17).
Details of Layoffs
Kaiser said that the layoffs were spread across its 65,700 employees in offices and hospitals from Kern County to the Mexican border (Roman, "KPCC News," KPCC, 11/17).
However, it did not provide the specific locations of the positions.
Officials said that the layoffs did not include physicians (Los Angeles Daily News, 11/17).
Under certain contracts, union workers who were laid off will receive benefits and income for one year, according to officials (AP/Sacramento Bee, 11/17).
Reasons for Layoffs
Kaiser officials said the layoffs are part of several cost-reduction initiatives that the group has undertaken to meet the "changing dynamics" of the U.S. health care industry ("KPCC News," KPCC, 11/17). They said the company is preparing for possible changes under the Affordable Care Act.However, Peggy Hinz -- a Kaiser spokesperson -- said, "We expect that over the next year we will experience significant membership growth and anticipate that many of these affected employees will have new opportunities to be placed in other positions and remain with our organization" (Los Angeles Daily News, 11/17). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.