Burlington, Mass.-based Lahey Health is laying off 130 people at three hospitals as it works to cut costs, according to a Boston Globe report.
Here are four things to know about the layoffs.
1. The layoffs represent about 1 percent of Lahey's workforce and include managers, clinicians and administrative staff. Most of the layoffs, a total of 95 people, will come at Lahey's flagship hospital in Burlington, while 30 will affect Winchester (Mass.) Hospital. Five people will be laid off at Beverly (Mass.) Hospital.
2. In addition to the layoffs, eight Lahey executives, including CEO Howard Grant, JD,MD, have agreed to take 10 percent pay cuts for the remainder of the year, according to the report.
3. The decision was made in the wake of financial loss. Lahey said this week that it lost $21 million during the six months that ended March 31 due to decreased business during a harsh winter and spending more than expected on the rollout of a new software system, according to the report. Lahey also placed blame on what it called low reimbursements from public and private insurers, the report notes. Lahey expects to break even this fiscal year, which ends Sept. 30.
4. In a statement, Dr. Grant said such decisions are "extremely difficult," but "ensure Lahey Health's long-term ability to meet the evolving needs of the communities we serve in an exceedingly challenging healthcare environment."
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