Wave of Dignity Health physician departures in Santa Cruz after contract dispute

The article reports a wave of physician departures from Dignity Health's Dominican network in Santa Cruz after contract negotiations with the Santa Cruz Medical Group and CommonSpirit broke down. According to a physician source, at least 10 primary care providers left the Dignity Health network along with at least a dozen more physicians across specialties including obstetrics/gynecology, intensive care, urology, hematology, oncology, endocrinology, gastroenterology and rheumatology — totaling at least 22 physicians. Many departed by retiring early or taking jobs in neighboring counties; some sought other local providers or went to larger systems such as Stanford. Dignity Health characterized the changes as “strategic adjustments” and said it is enhancing access and bringing in new clinicians, but declined to provide a specific departure count or comment on the failed negotiations. The departures have strained local appointment availability and patient access in Santa Cruz.

LayoffTalk has tracked 9 layoff events at Dignity Health since August 2023, including 196 jobs documented in official WARN filings, with 7 additional events known from news reporting.