Saddleback Medical Center Lays Off 50, Cites Recession

LAGUNA HILLS —  Saddleback Memorial Medical Center on Monday laid off about 50 of its 1,100 employees, blaming the sluggish economy for a drop in the number of patients.

The Laguna Hills nonprofit hospital said the layoffs--coupled with attrition and resignations--will result in the elimination of a total of 90 positions. The layoffs cut across all job categories and included nurses, secretaries, engineers, lab technicians and a vice president, according to hospital officials.

The company said some employees could be rehired this winter.

Saddleback Memorial, like other hospitals in Orange County and elsewhere, has seen a decrease in patients as elective surgeries and treatments are put off until the economy recovers.

“All over the Southland there are a number of institutions that are hurting big time,” said Tom Heckler, a partner at Hamilton/KSA, a Redwood City health-care consulting group.

Saddleback Memorial was treating an average of 155 patients a day in July, but only 135 in August. The hospital has 221 beds, so its occupancy rate ranges between 60% and 65%.

“People are postponing elective surgery,” said James L. Ray, Saddleback Memorial’s executive vice president. “They have either changed jobs or been laid off and are being careful with their discretionary dollars.”

Some employees complained Monday that the terminations come just as the hospital is constructing a new cardiac catheterization laboratory for $3.5 million. The lab is used to detect and clear blockages in heart arteries.

Ray said the money for the lab comes entirely from private donations “used solely for the purpose of capital items.”

Saddleback Memorial, which opened in 1974, is owned by Memorial Health Services, a nonprofit health-care organization that also owns Long Beach Memorial Medical Center.