Pomona Valley Hospital Medical Center says it will eliminate 265 positions as it grapples with tens of millions of dollars in lost federal funding, a move that labor leaders warn could impact patient care.
Hospital officials say the cuts stem from reductions in federal and state health care funding tied to the Big Beautiful Bill, a federal spending measure passed last year that reduced Medi-Cal reimbursement and other safety-net health funding. According to the hospital, those changes led to a $40 million drop in revenue in 2025 alone.
In a statement, Pomona Valley Hospital said the workforce reduction is part of a broader effort to maintain long-term financial stability while continuing to provide care to low-income patients. The hospital said 128 of the 265 positions will be eliminated through unfilled vacancies and planned retirements, while another 137 positions will be cut through layoffs and reductions in hours. Hospital officials said the changes will take effect March 8.
The hospital said the reductions span management, clinical, and non-clinical roles, including seven registered nurse positions, but said patient care services would not be directly impacted. Officials also warned additional cuts could be on the horizon, estimating future losses of more than $20 million due to declining insurance coverage and reductions in Disproportionate Share Hospital payments.
“It is with deep regret that we must take these difficult actions,” said hospital CEO Richard Yochum in a statement. He said Pomona Valley Hospital is working with lawmakers and health care advocacy groups to protect funding for safety-net hospitals.
The union representing nurses and other hospital workers, SEIU RN, disputes the hospital’s claim that patient care will not be affected. Union leaders say some of the proposed layoffs involve workers who provide direct patient care, including positions in the Women’s Center, which serves what the union describes as particularly vulnerable patients.
In a statement to members, union leaders said they plan to enforce contractual protections related to layoffs and have requested additional information from hospital management. The union said it will demand bargaining over the impacts of the layoffs and has raised concerns that the cuts could disproportionately affect frontline staff rather than management.
Union leaders also acknowledged that federal health care cuts pose real financial threats to hospitals nationwide but said cost-saving efforts should focus on administrative roles rather than bedside care. They argue reductions in patient-facing positions could undermine care quality and patient safety.
Pomona Valley says affected employees are expected to receive severance and other support services. The union has scheduled a meeting with members to discuss next steps as negotiations continue.
