USC Keck School of Medicine said it would eliminate 92 positions across the organization.
The health system will lay off 92 non-direct patient care positions out of more than 4,000, according to a notice USC sent to the state Employment Development Department. The notice added that although top-line revenue growth has increased, expenses have outstripped that revenue, with total operating costs rising beyond expectation.
“Like countless other top academic medical centers across the country, Keck Medicine has reached a fiscal turning point that necessitated this restructuring to support increasing patient volumes and other positive growth indicators, coupled with the challenges of today’s health care climate of rising costs and declining reimbursements,” said Keck Chief Executive Thomas Jackiewicz in a statement. “We sought to minimize the impact of this restructuring by eliminating contract positions and open or unfilled positions.”
He noted the changes affected many areas of the organization, and Keck focused on directing reductions toward upper-level management and non-patient care positions wherever possible.
USC added that the layoffs will not result in any hospital or clinic closure, and it anticipates this will be a temporary measure to control expenses.
Layoffs will be effective May 8 and all affected employees have been notified.