By Cecil Egbele | Contributing Writer | California Local News Fellow
Two of Kern County’s largest hospital systems are cutting jobs this summer, even as local health officials continue to describe Kern as a region starved for medical professionals.
Dignity Health confirmed it will permanently lay off 57 employees, according to a WARN notice filed with California’s Employment Development Department on June 28, with the cuts taking effect this fall on August 2.
In a statement provided directly to the Bakersfield News Observer, a Dignity Health spokesperson said: filed on June 28, with the cuts taking effect this fall on August 2.
“Memorial Hospital is facing unprecedented economic pressures, soaring costs, and complex government and payer dynamics. To support long-term sustainability and uphold our commitment to serving our communities, we are taking a number of steps to improve efficiency and reduce costs. This includes making the difficult decision to reduce some roles in our organization. We are committed to approaching this process with compassion and respect. By strengthening our operational foundation, we are strategically positioning ourselves to adeptly navigate today’s healthcare landscape. This proactive approach not only enhances our immediate resilience in addressing current challenges but also lays the groundwork for sustained growth and innovation for improved health outcomes long term.”
Bakersfield News Observer reached out to the hospital to address which departments or positions are affected, and whether laid-off staff will be considered for other roles within the organization, but got no response.
The news of the cut came days after Adventist Health disclosed changes affecting over 130 workers across its Central Valley network, 22 of them in Kern County. Becker’s Hospital Review said “the restructuring comes as health systems nationwide battle financial pressures tied to changing reimbursement models, rising operating costs and uncertainty surrounding federal healthcare policy.”
The review said the hospital is placing affected employees in other roles across the organization. “As of the announcement, 109 of the 132 affected workers had been offered positions within the system.”
Dignity Health’s parent company, Chicago-based CommonSpirit Health, has been under sustained financial strain, according to Becker’s Hospital Review, a trade publication that tracks hospital and health system finances. It said CommonSpirit, Dignity Health’s parent company, reported a $578 million operating loss for the quarter ending March 31, which it cited as part of the financial pressure driving the decision.
The reduction highlights a bitter irony for Kern County, long plagued by a well‑documented shortage of healthcare practitioners and stark medical resource disparities.
Yet, instead of expanding local care capacity to meet this desperate need, two of the region’s largest health networks are actively trimming their workforces. Programs like the Return to Kern (R2K) medical school pathway, launched with Morehouse School of Medicine, were built explicitly to address that gap; while small hospital owners are working to make access to healthcare more accessible to those in dire need.
Whether the current round of hospital layoffs will deepen staffing shortfalls in the specific units where Kern already struggles to recruit and retain workers remains an open question– one Dignity Health has not yet answered.
