Pomona Valley Hospital Medical Center in Pomona, Calif., plans to eliminate 265 positions amid significant state and federal funding cuts. The reductions, announced Jan. 7, are part of a broader strategy to preserve access to care, maintain long-term sustainability and address financial headwinds, according to a statement shared with Becker’s.
The 427-bed nonprofit community medical center said the cuts affect management, clinical and nonclinical roles, including seven registered nurses. The reduction will not directly impact patient care services, the hospital said. Pomona Valley employs more than 3,500 people.
Of the 265 roles, 128 will be eliminated through attrition and planned retirements this year. Another 137 will be removed via layoffs and reductions in hours. According to the WARN notice filed by the hospital, layoffs will take place by March 8. The cuts follow a review of operational needs, organizational structure and position redundancies.
Pomona Valley cited HR1 — also called the One Big Beautiful Bill Act. — as a key factor behind the budget gap. The legislation reduced Medi-Cal reimbursements and the California Hospital Quality Assurance Fee, which supports safety-net hospitals. The hospital’s 2025 revenue budget was reduced by $40 million with no offsetting savings. Leaders project an additional $20 million in cuts due to reduced Covered California insurance participation and lower Disproportionate Share Hospital payments.
Affected employees will receive severance, unemployment assistance, outplacement services and continued access to medical benefits. The hospital is also offering a voluntary separation program and the ability to apply for open roles.
“It is with deep regret that we must take these difficult actions,” hospital President and CEO Richard Yochum said in the 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 healthcare services.”
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