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April 23, 2015

Calif. Hospital Chain Cuts 280 Jobs After Scotched Sale

Catholic health system Daughters of Charity is eliminating about 4 percent of its 7,000-strong work force following the collapse last month of its proposed sale to a for-profit hospital network, San Francisco Business Times writes. A spokeswoman for the Los Altos, Calif.-based nonprofit said about 280 positions at its six hospitals in the Los Angeles and San Francisco Bay areas will be lost.

Prime Healthcare dropped its $843 million takeover bid for financially struggling Daughters of Charity after California Attorney General Kamala Harris imposed stringent conditions on the deal. In a statement, Daughters of Charity said the layoffs are part of a larger effort to reduce expenses and stabilize the hospitals' finances as the organization seeks a new buyer. The system has been losing money at a rate of about $12 million a month.