UC-DAVIS MEDICAL CENTER: Far Fewer Layoffs Than Expected
Sacramento-based UC-Davis Medical Center, which warned employees to prepare for "significant layoffs" just six months ago, looks to end the budget year with "far fewer layoffs than expected," the Sacramento Bee reports. Administrators at the non-for-profit medical center had said that the health system needed to "eliminate about $12 million in personnel costs" by the budget year's close. To date, UC-Davis has cut 105 vacant positions and laid off 142 employees -- far less than the speculated 1,000-position reduction. Administrators estimate that they must lay off 53 additional employees to meet financial goals; by year's end, the medical center will have cut 300 jobs. Of those laid-off employees, 71 have moved into other jobs within UC-Davis, and only 47 people have left the university's employment. "We've been pleased that so few people have been displaced," COO Martha Marsh said, adding, "We have a lot of loyal employees and we want to keep them here." But the facility is expecting another challenging year, which may lead to additional staff reductions in the 2000-2001 fiscal year. Although revenue is anticipated to grow at a rate of 1%-2%, costs are increasing at a much higher rate. Marsh said, "We know we're going to have costs to take out. Exactly where they'll be taken out, we don't know" (Fisher, 3/24).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.