Sharp HealthCare has made headlines following two significant developments regarding its workforce as it moves to align its resources with changing economic conditions.
The healthcare provider announced on Monday that it would be laying off 315 employees due to dramatically changed economic conditions over the past five years, citing rising labor costs, state-mandated seismic requirements, and decreasing reimbursements from Medicare, Medi-Cal, and commercial insurers.
These cuts account for approximately 1.5% of Sharp’s total workforce and primarily affect non-clinical positions, which Sharp claims will have minimal impact on direct patient care.
Sharp CEO Chris Howard expressed his concern about the layoffs, stating, “Our employees are the heart of our organization, and we value each and every one of them. We do not make these decisions lightly nor without compassion for those impacted.”
The cuts come amidst efforts to navigate financial challenges and ensure long-term sustainability for the organization.
As the layoffs were announced, news broke that 40 Sharp medical office workers had voted unanimously to unionize under SEIU-United Healthcare Workers West, a union that represents 120,000 healthcare workers across California.
This election took place by mail from June 9 to June 30, and the newly unionized workers are located in six SharpCare medical offices in Coronado, Chula Vista, La Mesa, San Diego, Santee, and Spring Valley.
With this decision, they join a larger unionized workforce at multiple Sharp locations, including Sharp Metropolitan Campus, Sharp Chula Vista Medical Center, Sharp Grossmont Hospital, and Sharp HospiceCare.
Sharmaine Figueroa, a medical administrative assistant at SharpCare Coronado, spoke on the motivations behind the unionization, saying, “We voted to unionize for the same reason so many other healthcare workers across San Diego have — to provide better care for our patients and a better life for our families.”
She added, “Now we have a voice to improve patient care. Now we’ll be able to provide our loved ones a better, more stable future.”
Earlier this year, over 650 of Sharp’s workers had already joined the union, which had successfully bargained for a new contract that includes pay increases of up to 34% over three years, significant improvements in medical benefits, and a stronger voice for workers concerning staffing and patient care.
Alicia Bradley, an anesthesia technician at Sharp Mary Birch Hospital, expressed enthusiasm for the union’s growth, stating, “We’re not stopping at Sharp. I know healthcare workers at other facilities in San Diego. They’ve seen how much our new contract improves things for patients, workers, and this whole community, and they’re ready to join us in SEIU-UHW.”
In contrast, critics are voicing concerns about the layoffs and their potential effects on patients and working families.
Paloma Aguirre, the mayor of Imperial Beach and a candidate in the San Diego County Supervisors Election, attributed the situation to a lack of funding under the current presidential administration, specifically pointing to cuts to Medicaid as a factor leading to such decisions.
“I’m deeply alarmed by Sharp Healthcare’s decision to lay off hundreds of workers which will hurt working families and put patients at risk,” Aguirre stated.
She further remarked, “Let’s be clear: this is happening because President Donald Trump and Republicans in Congress are slashing Medicaid to fund tax breaks for the rich. We need a supervisor who will stand up to this crazy MAGA agenda that leaves working families behind.”
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