March 17, 2009

Kaiser to cut 860 information technology jobs

According to SFGate: “Kaiser Permanente is cutting 860 information technology jobs nationwide under a realignment that includes a $500 million deal giving IBM management duties at Kaiser’s medical records data centers.”

“The Oakland health maintenance organization, which has spent as much as $5 billion over the past five years building up its electronic records system, said Monday it has inked a seven-year deal with IBM to maximize the performance of its data processing units.”

“In a separate action, Kaiser is eliminating an additional 160 information technology jobs scattered across 30 locations as it pares back spending due to the impact of the economic downturn.”

“Of the 700 staffers affected by the IBM deal, 500 work at one of the California data centers, which are located in Pasadena, Corona, Napa, Walnut Creek and Irvine

~News submitted by Jack R.


  1. My husband was 1 of the MANY that got layed off yesterday on March 16. Kaiser has no loyalty to their employees. Here in CA 1000’s upon 1000’s of people & families have been affected. IBM is going to rehire 300 Kaiser employees. They have to interview with IBM over the next couple of weeks…….only to most likely be let go in 9 months. Most people will say well it’s the economy OR Kaiser is cutting back on spending to recuperate money from the economic downturn BUT I’m telling you that’s far from the truth. There’s been talk about becoming a model for a National Health Care System (like Canada). Kaiser really wants to be ready when & if this happens in the future. The US is going to need a national health care system after KP layed off ALL these men & women…..because I’m sure by now they are getting ulcers & becoming depressed. If you’re looking to move to CA…..go for it because there is going to be A LOT more foreclosures in the upcoming months.

    Comment by Truth Behind KP Lies — March 17, 2009 @ 4:01 pm | Reply

    • What are you talking about? Kaiser has been very faithful to there employees and treats them well, and I think it is silly for you to say otherwise. Kaiser has been suffering financially because if the economic down turn. If you do the research you will see that Kaiser had major losses last year and continues to lose. You should do your research before you put down the company that employeed your husband for god knows how long. In addition to that, how much did you and your husband have to pay for your Kaiser benefits while he was employed with them… oh yea nothing. But Kaiser is not good to their employees? Not being good to the employees would mean them not giving severance packages…. which we all know your husband did get one.

      Comment by Anonymous — March 18, 2009 @ 4:18 pm | Reply

      • Kaiser sucks big times. It is a McDonalds in health care. For example physicians are required to see 35 patients per shift. This is about 10 minutes per patient. Doctors simply do not have time to threat the patient, other than saying “take tylenol.. next!”.

        Comment by Anonymous — March 18, 2009 @ 5:19 pm | Reply

    • Where are you getting your “Kaiser had major losses last year and continues to lose”. How would you know? Are they a public company? Do their books need to be scrutinized like any company that reports to the SEC does? NO

      The truth is – Kaiser’s losses ALL stem from Wall Street investments. Their membership was forecast to shrink, but it actually grew. Who’s investments did not tank? Since only one(1) mutual fund out of the thousands that existing in the US made money, of course EVERY company lost investments. Get your *hit together before you post BS. The IBM Outsouring deal is lead by a group of CXO’s who will not be around in 3-5 years. KP-IT has had a revolving door of leadership, and it just continues. Stupid, short-term thinking.

      “Its Kaiser Foundation Health Plan Inc. and Kaiser Foundation Hospitals and subsidiaries posted $307 million in operating income for the quarter, compared to $449 million a year earlier. But those operating profits were overwhelmed by the impact of what Kaiser described as “financial market volatility” during July through September quarter, which ended in the midst of the recent Wall Street crash.”

      Comment by Jim Thorpe — March 20, 2009 @ 9:54 am | Reply

  2. I personally like Kaiser, they do have to turn over patients rapidly but in any efficient business you have to be productive, but on the other hand if the physician needs to spend more time with a patient they do. also kaiser has been losing money for about a year now and they tried to hold on to all their employees until they had to cut something, and then they still gave those effected a severance package.

    Comment by Anonymous — March 19, 2009 @ 4:10 am | Reply

  3. Cut the salaries of the doctors. The doctors union is a separate entity (like the UAW) and negotiate hard with Kaiser Hospital’s. A 10% cut in doctor salaries will bring down expenses big time.

    Comment by retards — March 19, 2009 @ 9:24 am | Reply

    • The typical salary of a physician (Family Practice) is 140-160K/year. This is after 2 years in college, 4 years in medical school, 3 years residency.
      Re: “A 10% cut in doctor salaries will bring down expenses big time” —
      Dude, you are aiming the wrong target. The insurance mafia collects billions of bucks each years in ‘bonuses’. Have you heard about AIG recently? If so, well, this is the way it works.
      Blame insurance companies, not a doctors who are working hard saving lives.

      Comment by Anonymous — March 19, 2009 @ 10:46 am | Reply

      • Malpractice lawsuits are the biggest drain on the healthcare system (which is why insurance fees are high). Deport all lawyers to Antarctica and the healthcare costs will come down drastically. The doctors and nurses unions have a role to play but they are not the biggest villains in this story.

        Comment by Amused — March 21, 2009 @ 1:56 pm | Reply

    • KP-IT just needs to unionize, just like the nurses have done. Those that are left should contact:

      A mass strike by these workers would cause major issues, and force management to sit down. Do it now, or forever hold your peace!

      Comment by Jim Thorpe — March 20, 2009 @ 9:58 am | Reply


    Phil Fasan did this before at JP Morgan, worked great!? Wonder what Phil received from IBM then, compared to now? Cars? Cash? Trips? Boats?

    Ah, revolving door of Upper Management at KP….great place! He won’t be there long.

    Comment by greg merik — March 20, 2009 @ 10:07 am | Reply

  5. I am internal, Kaiser has lost, A LOT, so know what you are talking about before you talk crap. I am aware of Kaiser’s loses, and yes they did lose!!! Kaiser is not exempt from the economy downturn!!!

    Comment by Anonymous — March 20, 2009 @ 12:39 pm | Reply

  6. […] Kaiser Permanente Layoffs (New) […]

    Pingback by Today’s Hot Layoff Topics « — March 20, 2009 @ 1:21 pm | Reply

  7. Outsource, outsource, outsource.

    Comment by anonymous — March 21, 2009 @ 9:30 am | Reply

      In other words, there would be a problem with IT outsourcing due to Kaiser’s HIPAA compliance.

      Comment by DF — March 23, 2009 @ 1:04 pm | Reply

  8. While I haven’t worked at Kaiser, I have worked in CA healthcare IT for 22 years. There are many contributing factors to healthcare’s financial woes, but don’t criticize a company for trying to run lean. That is necessary to survive and to do otherwise would be financially irresponsible.

    Anyone in healthcare should know every doctors office is required to spend less time with patents than they used to. If they don’t they won’t …survive. Again, while I don’t know the specifics at Kaiser, my guess is if you talked to their doctors they’d tell a tale of reduced income. I can’t imagine any CA healthcare system where the doctors haven’t seen a reduction in income and an increase in workload. That’s life these days.

    And just because someone uses a similar management approach as at a previous job doesn’t mean the approach is bad. It more likely means they were happy with the prior results and thus know how to get those results again.

    Comment by Dave — March 26, 2009 @ 5:45 am | Reply

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