Another round of layoffs at Long Beach Memorial

Long Beach Memorial executives on Monday announced another round of layoffs, continuing a turbulent year that has seen more than 250 workers terminated in less than three months.

The latest round of layoffs saw the termination of 58 positions, including interpreters and respiratory therapists as well as nonmedical and administrative positions at both Long Beach Medical Center and Miller Children’s and Women’s Hospital, spokesperson Richele Steele confirmed Monday. Three other positions were reclassified from full time to part time, she added.

“We know that these last few weeks have been difficult, and today is no different,” interim CEO Frank Beirne said in an internal memo obtained by the Watchdog. “Change is not easy, but together, we have an opportunity to ensure our hospitals' future.”

The layoffs are the result of “operational and workflow changes” that align with industry best practices and will not impact patient care or reduce available services, according to Steele.

Employees, however, have said the layoffs already are having an impact. One respiratory therapist said the affected workers were laid off Friday and as a result called out of their weekend shifts, leaving the hospital short staffed. One of the hospital’s doctors said the move is dangerous as the emergency department will continue admitting patients with respiratory issues.

“We’ll be stuck dealing with the lack of respiratory therapists once they get upstairs,” they said, adding that the layoffs account for 10% of the department.

The interpreter services department, meanwhile, was restructured to an “all-digital, on-demand” model that offers 240 languages via off-site interpreters on video or phone, rather than in-person interpreters, according to Steele. The shift resulted in seven staff members being laid off, she added.

“It’s especially offensive to our large Cambodian community,” the doctor said. Long Beach has the largest Cambodian population outside of Cambodia.

This is the fourth round of layoffs at the medical campus this year. The first round on April 1 included 60 employees, followed by another 115 a month later on May 2. On May 30, about two dozen case managers were unexpectedly laid off.

“While difficult, these types of adjustments are necessary to ensure that the hospitals remain sustainable and can continue to provide exceptional patient care for years to come,” Steele said.

The hospital is allegedly facing a $40 million budget shortfall, according to multiple employees. The hospital, for its part, has declined to comment on it finances.

In a February 2024 interview, however, former CEO Blair Kent, who earlier this month announced his retirement after two months on personal leave following a staff vote of no confidence as well as the unexpected death of his son (it’s unclear which incident led to his leave, but Kent said his retirement was the result of his son’s death), said the hospital was losing $5 million every month in 2023.

Despite the financial hardships, employees have accused the company of continuing to give large annual bonuses to the Long Beach hospitals’ executives. The hospital did not respond to a question about whether executives received bonuses in 2023 or 2024, nor did it respond to a question about whether pay cuts at the executive level have been considered to help offset losses.

Memorial Health Services, the 501(c)(3) nonprofit that owns and operates the Long Beach campus as well as Orange Coast and Saddleback medical centers, reported $85.5 million in profits in 2023, the most recent records available via ProPublica. That year, President and CEO Barry Arbuckle received over $6.2 million in salary and other compensation, while the next nine top-paid executives earned a combined $9.7 million, records show.

It’s unclear how much executives at the Long Beach campus are paid.

Hospital leadership is expected to announce more layoffs in the coming months, though no specifics were provided.

“Our hospitals, like so many others across the country in today’s challenging environment, must regularly look for ways to enhance efficiency while preserving our standards for providing high quality patient care,” Steele said. “The productivity and performance improvement work will continue at the Long Beach campus, and leadership expects to identify additional opportunities to streamline staffing models at both hospitals and to improve the consistency and quality of care.”