Overview

• Sharp HealthCare laid off 315 employees—about 1.5% of its 20,630-strong workforce—mostly from nonclinical support and administrative roles.
• Senior vice presidents will incur a 15% pay reduction, and CEO Chris Howard plans a roughly 25% cut that will bring his salary below $2 million.
• The health system pointed to rising labor costs, state-mandated expenses and lagging reimbursements from Medicare, Medi-Cal and commercial insurers as key factors behind the measures.
• Sharp insists the staffing and compensation changes will not impact patient services and are designed to bolster its long-term financial stability.
• The move follows UC San Diego Health’s decision last week to eliminate 230 positions under similar financial headwinds.