Pomona Valley Hospital Medical Center in Pomona, California, has announced plans to reduce its workforce by 265 positions due to significant reductions in state and federal funding. The decision, revealed on January 7, is part of efforts to manage financial strain while continuing to provide patient care.

The hospital, which employs over 3,500 staff members, stated that 128 of the affected positions will be phased out through natural attrition and scheduled retirements within the year. The remaining 137 roles will be impacted through layoffs and reduced working hours, with workforce changes expected to be completed by March 8, according to a WARN notice.

Hospital leadership attributed the financial shortfall largely to HR1 also known as the One Big Beautiful Bill Act which led to lower Medi Cal reimbursement rates and reductions in the California Hospital Quality Assurance Fee that supports safety-net hospitals. As a result, the hospital’s projected revenue for 2025 declined by approximately $40 million without corresponding cost relief.

Employees affected by the cuts will be offered severance packages, unemployment support, career transition services, and continued access to medical benefits. The hospital has also introduced a voluntary separation program and encouraged displaced staff to apply for available internal positions. Hospital President and CEO Richard Yochum expressed regret over the decision, noting that similar financial challenges are affecting healthcare organizations nationwide and that advocacy efforts are ongoing to protect critical funding.

Source: Becker’s Hospital Review: Kelly Gooch