Layoff has been on the rise throughout the nation’s hospital in recent years. Due to aging population (baby boomers) demands more healthcare services; …show more content…
The layoff of 69 employees, affect workers in the human resources and marketing departments (Gooch, 2016). Scripps Health President and CEO Van Gorder informed the hospital needs to hit its financial targets to generate enough capital to comply with California’s SB1953 (This requires the hospitals upgrading or replacement of the hospitals by 2030), the hospital needs to control the cost (Gooch, 2016). Therefore, Scripps is lowering costs within corporate department, which is reducing the cost in administrative functions to make sure that the hospital has the necessary resources for patient care. Even though Scripps cannot promise any employee that they will have the same job at the same location their entire career, the hospital created the Career Resource Center (CRC) to help them to update their skills and obtain another position at Scripps. Over 10 years that Scripps has had the CRC, more than 1,000 employees have participated and over 90 percent of those employees who were layoff from the hospital were successful in finding a new position. Also, the hospital goals moving forward are to rebase the cost structure by lowering the costs for the good of patients and staff. Scripps are a major part of San Diego and community economy, the hospital will make sure that it remains financially strong for the patients and secure employer for its