A Sutter Health affiliate in the Bay Area will transfer 200 positions to Sacramento over the next 17 months, with the first jobs expected to come to the city in January.
Palo Alto Medical Foundation is combining services with Sacramento-based Sutter Connect, which provides administrative services to Sutter Health medical foundations across Northern California.
The move is expected to save the Palo Alto-based foundation $100 million over the next 10 years, officials said.
Palo Alto officials called the move a "difficult decision" but said the state of the economy and the debate over national health care reform forced their hand. "It is imperative that we look for ways to reduce our costs so we are able to deliver high-quality health care at an affordable price," David Druker, chief executive officer, said in a statement.
The not-for-profit Palo Alto Medical Foundation operates medical centers and clinics in four Bay Area counties, employing 4,500 people and serving more than 635,000 patients.
Nearly 150 jobs in patient accounting and managed care claims services are out of the foundation's Sunnyvale offices, with the remainder moving from Santa Cruz and Mountain View. Officials say they will be offered comparable positions at Sutter Connect.
Employees will relocate in phases and will receive relocation assistance. Those who do not make the move will be offered transition services, money to retrain and a severance, officials said.
Source Sac Bee
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