MedStar Washington Hospital Center is laying off 100 employees in attempt to cure its budget woes. The cut that will shrink its workforce by 2%.

The D.C.-based hospital’s president, John Sullivan, wrote in a June 2 email to employees that the layoffs were due to a “financially challenging” fiscal year.

The not-for-profit hospital—part of the $5 billion, Columbia, Md.-based MedStar Health Inc.—faces budget shortages stemming from a national nursing shortage and “inflationary pressures” on pharmaceutical and medical supplies costs. MedStar also has had to hire new employees to staff a new sepsis response team, behavioral emergency response team and other recent investments, which contributed to the layoffs.

Managers and non-management workers will all be affected by the decision.

MedsStar Washington Hospital Center officials were not available for comment.

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Rachel Arndt joined Modern Healthcare in 2017 as a general assignment reporter. Her work has appeared in Popular Mechanics, Quartz, Fast Company, and elsewhere. She has MFAs in nonfiction and poetry from the University of Iowa and a bachelor’s degree from Brown.

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