Children’s Hospital Los Angeles announces hundreds of layoffs, citing funding issues

Topline:

What the hospital’s saying: “It became increasingly clear that reductions to both team member and management roles were necessary to ensure CHLA can continue to survive in this uncertain climate,” the hospital’s CEO Paul S. Viviano said in a statement .

The larger context: The hospital didn’t mention federal funding directly in its statement, but the layoffs come as it faces the effects of Medicaid cuts that were passed under President Donald Trump’s budget plan. Organizations like the Association of American Medical Colleges have warned that the cuts will harm hospitals, especially rural ones and those that rely on Medicaid (or Medi-Cal) reimbursements like CHLA.

How federal funding plays in: CHLA received about $700 million yearly from Medi-Cal, according to the