Palomar Health has announced plans to layoff 84 employees next month. Palomar officials say it's due to circumstances beyond their control.
Palomar operates two hospitals in Escondido and one in Poway. It employs 4,000 people.
Palomar officials say the layoffs are necessary because of rapid changes in the marketplace.
Officials point out recently mandated sequestration cuts are costing Palomar $10 million. In addition, the system is getting less money from Medicare and the state.
Some members of the California Nurses Association question the timing of the layoffs.
Palomar's labor contract with the union expired last week. A number of bargaining sessions are planned this month, but nurses are concerned how layoffs will affect the talks.
Palomar opened a $1 billion state-of-the-art hospital last August.