Sharp HealthCare, San Diego County’s largest medical provider, announced Monday it will be laying off over 300 employees, citing rising costs and challenging economic conditions.
In a statement, Sharp HealthCare said 315 workers -- about 1.5% of its workforce -- would be cut “across all levels of the organization.”
This announcement comes one week after UC San Diego Health announced that it cut 230 positions for the same reasons: increased costs coupled with stagnant reimbursement and signals that Medicaid, the nation’s last-resort insurance, is likely to see significantly less support with the passage of President Donald Trump’s One Big Beautiful Bill Act.
Sharp HealthCare’s full statement:
The economic conditions in health care have dramatically changed over the last five years, and it has become increasingly clear that Sharp HealthCare is not immune to the related challenges. To navigate these changes and maintain Sharp’s position as San Diego’s health care leader for generations to come, the organization has made the extremely difficult decision to reduce its workforce. This includes the elimination of 315 employees (1.5% of the workforce) across all levels of the organization — including senior executive leadership — as well as reductions in hours and role adjustments for some positions. The vast majority of these positions are in nonclinical areas of the organization, resulting in minimal impact to direct patient care.
Additionally, senior executive compensation will be reduced by approximately 15%, and Chris Howard, Sharp HealthCare President and CEO, has elected to reduce his compensation by an additional 10%. Several expenses in mostly nonpatient care areas will also be reduced so that Sharp can continue to provide full-service, high-quality care to San Diegans
Sharp assures the San Diego community that there will be no impact on the extraordinary level of care they expect and receive from Sharp. The health system has served the San Diego community for seven decades, and these actions, combined with ongoing growth initiatives, are expected to strengthen the organization for decades to come.
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