The Pomona Valley Hospital Medical Center, facing significant financial pressures stemming from ongoing state and federal budget reductions, plans to eliminate 265 jobs across the hospital system due to a budget shortfall of more than $40 million.
The cuts will impact across the hospital, including management, clinical and non-clinical areas, according to a statement issued by Pomona Valley. Of these, 128 positions have been removed by not filling vacant positions and by planned retirements in 2026. Another 137 positions will be removed through layoffs and reductions in hours.
“These decisions were made following a thorough evaluation of operational requirements, organizational structure and redundancies in positions,” hospital spokesperson Sandy Nesheiwat Rodriguez said. The cuts were announced as part of “a strategic plan to protect access to high quality care, ensure long-term sustainability and address growing financial challenges.”
The layoffs amount to nearly 7% of Pomona Valley’s 4,000 workers.
Richard Yochum, president and chief executive officer of the hospital, declined to comment to the Southern California News Group.
“It is with deep regret that we must take these difficult actions,” Yochum said in a statement. “Sadly, we are not alone in facing this healthcare industry crisis. We are working rigorously alongside policymakers and with our national, state and local healthcare advocacy associations to further protect funding to maintain our ability to deliver high quality health care services.”
The workforce reduction is driven by state and federal funding cuts resulting from the passage of the “One Big Beautiful Bill” last summer. That legislation, signed into law by President Donald Trump on July 4, reduced Medi-Cal reimbursement and the provider tax reduction, including the California Hospital Quality Assurance Fee (HQAF). Without the HQAF program, safety net hospitals like PVHMC would no longer be able to operate, said Rodriguez in the statement.
Medi-Cal is California’s Medicaid program, providing free or low-cost comprehensive coverage to low-income residents, including families, children, seniors and people with disabilities.
HQAF is a state program where California hospitals pay a fee to the state, which then uses that revenue, combined with federal matching funds, to provide supplemental payments back to hospitals — especially for Medi-Cal, and to fund children’s health programs and public hospital grants.
Last year’s tax and spending bill reduced Pomona Valley’s 2025 revenue budget by $40 million, Rodriguez said. “The hospital expects to see even more cuts, estimated to be more than $20 million, with drops in insurance coverage for Covered California recipients and in disproportionate share reimbursement over the next couple of years.”
Covered California is the state’s health insurance marketplace, established under the Affordable Care Act.
The job cuts affect the Pomona Valley Hospital Medical Center along North Garey Avenue in Pomona, the Pomona Valley Health Center in Claremont and the hospital complex’s finance department and business office along Park Avenue in Pomona, according to a Jan. 7 filing made by Pomona Valley’s Yochum with the state’s Employment Development Department.
Meanwhile, a union spokesperson for a chunk of the 1,358 registered nurses and other healthcare professionals laid off at Pomona Valley said the hospital system serves many low income and vulnerable patients — the same patients who will soon lose access to health insurance.
“Sadly, we may soon see fewer available hospital beds, more healthcare layoffs, and more patients harmed throughout our region and across the country,” said Hal Weiss, the spokesperson for the Service Employees International Union, Local 121 RN.
“When Congress slashed more than a trillion dollars from Medicaid and Medicare last July, we knew it would devastate America’s healthcare system,” Weiss said. “Now, decision makers at Pomona Valley Hospital Medical Center must do all they can to reduce the impact of these layoffs on our patients and the workers who care for them. Ultimately, Congress must restore funding to save our hospitals and our healthcare workforce.”
In the filing, Yochum wrote that the 113 layoffs will take place between March 8 and March 15. About 24 other workers will face reduced hours during that time.
“We anticipate that all employees who will be laid off or have a reduction in their work hours will be affected by March 15,” he said.
The filing was made as part of the federal Worker Adjustment and Retraining Notification Act — commonly referred to as WARN — which is required when an employer lays off more than 50 employees. All affected employees are notified at least 60 days before their terminations are scheduled to occur.
The hospital plans to provide transition pay and benefits, severance offers, outplacement and other support services.
