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Scripps begins to stabilize as it undertakes restructuring
Modern Healthcare

Scripps Health’s operating performance is starting to stabilize as the San Diego-based system takes steps to get its costs under control. The four-hospital group is restructuring and plans to eliminate about 100 jobs.

Scripps CEO Chris Van Gorder notified employees in a memo earlier this year that the job cuts will come mostly from management and administration. The system spent nearly $2.4 million on restructuring costs in the quarter ended March 31, according to its quarterly earnings report.

Even still, Scripps’ costs are rising faster than revenue. Salary and benefit costs increased 7.4% year over year with costs coming from merit increases and an expanded full-time employee headcount, the earnings report said.

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