HOUSTON, TX — Texas Children’s Hospital is firing 5% of its staff due to financial challenges, according to an exclusive report by the Houston Chronicle.
Executive Vice President and Chief Human Resources Officer Linda Aldred told the Chronicle that among its total workforce of 20,000 in Texas and global locations, the hospital was laying off roughly 1,000 employees.
A report from Fitch Ratings, a major credit rating agency, downgraded Texas Children’s bond rating from “AA” to “AA-,” citing an income loss of $198.1 million through the first six months of fiscal year 2024. The report also stated the causes included a decrease in patient volumes, the delayed opening of a new Austin campus, and lower membership in its health plan due to Medicaid.
Aldred told the Chronicle that the financial crisis and subsequent layoffs were prompted by “historic financial challenges” within the healthcare sector. She also said the hospital’s executive leaders would take a pay cut.
Texas Children’s claims the layoffs would not affect patient care. However, local media reported that children were being waitlisted for speech therapies, as speech, occupational, and physical therapists were among the laid-off employees.
According to media reports, a physician assistant in California is suing Texas Children’s for $400,000. She was offered a job at Texas Children’s in April and relocated to Houston with her family in May. However, upon arrival, the hospital called her to say the job was “on hold” due to a hiring freeze.
The physician assistant said she had spent almost $30,000 on relocating. In an interview with the local media, she criticized the hospital’s mistreatment and asked for a proper explanation.
