400 Sutter Health jobs cut in northern California amid “growing budget gap”, says Sutter

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Sutter Health, which serves millions of people at 23 hospitals in northern California, cut about 400 jobs in its network earlier this month, officials confirmed Thursday.

The news comes two months after Kaiser Permanente cut about 200 jobs in its northern California area.

The job cuts affect non-clinical positions and do not focus on any specific facility, said Emma Dugas, a spokesperson for Sutter.

The cuts are “part of an effort to close a growing budget gap” amid rising costs and stable revenues that began before the coronavirus pandemic, Sutter officials said in a statement to The Chronicle on Thursday. More cuts could be underway as the not-for-profit health care system, which employs more than 55,000 people, seeks to restructure, shut down programs and downsize services in areas where demand is needed. patients is on the decline, officials said.

Sutter suffered a billion dollar operating loss in 2020, an imbalance that officials call “the most difficult year in our 100-year history.”

“Even with federal funding from the CARES Act, we experienced an operating loss of $ 321 million last year and $ 49 million in the first quarter of 2021, further eroding already declining operating margins. “, said officials.

Nora Mishanec is a writer for the San Francisco Chronicle. Email: [email protected] Twitter: @NMishanec

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