San Francisco’s Largest Private Hospital to Cut 200 Jobs

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The largest private hospital in San Francisco - the California Pacific Medical Center (CPMC), has recently announced its plans to cut 200 jobs from the hospital as well as implement a pay cut among managers to cut costs.  These cost-cutting measures will be complemented with a freeze on capital spending as well as a freeze on hiring to trim down hospital expense by an additional $30 million.  The hospital has already slashed $30 million from its expenses from previous cost-cutting measures.

These steps are being taken as part of California Pacific Medical Center’s parent company- Sutter Health’s goal of containing costs after it suffered losses in Wall Street in 2008.

The jobs being cut from the hospital range from management to clerical work but the hospital is careful regarding cutting jobs from patient-care jobs.  In a memo from Dr. Martin Brotman, President and CEO of Sutter’s West Bay Region and Dr. Morris Flaum, head of a medical foundation at CPMC, the global crisis is being cited as the reason for the need to cut down costs and eliminate jobs.  The economic downturn has affected the financial performance of the hospital. The two doctors explained that the cost-cutting measures are needed for the hospital to survive the current economic crisis.

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