Baystate Health, a five-hospital system headquartered in Springfield, Mass., is eliminating 117 corporate positions as part of ongoing efforts to improve efficiency and strengthen its financial footing, a spokesperson for the health system confirmed to Becker’s.
The cuts affect less than 1% of the system’s workforce. Affected employees have been notified and provided with support resources.
Baystate did not respond to Becker’s request for additional details on which specific positions were eliminated.
“This week, Baystate Health has taken another difficult step in driving greater efficiency across our health system by reducing roles in our corporate functions workforce,” the system said in a statement. “Individuals impacted have been notified with compassion and provided with support resources.”
As part of the changes, Baystate will outsource its clinical engineering operations to TRIMEDX, a medical equipment management company. Members of Baystate’s clinical engineering team will transition to TRIMEDX employees in May.
Baystate has also closed its central warehouse in Holyoke, Mass., effective Jan. 31, 2026, after moving over the past six months to a just-in-time supply delivery model aimed at improving efficiency, minimizing inventory waste and reducing storage space.
The workforce reductions follow a series of cost-cutting measures implemented over the past year. In November, Baystate launched a voluntary separation program for eligible employees in non-direct patient care areas, including subsidiaries such as Health New England, in an effort to reduce the need for involuntary layoffs. In April, the system shared plans to lay off 43 employees and had trimmed its workforce by 7% since November 2024, with about 60% of those cuts occurring through attrition.
Like many systems nationwide, Baystate cited rising labor costs, inflation and reimbursement challenges as key financial pressures. In July, the system projected an annual loss of $30 million to $50 million tied to the One Big Beautiful Bill Act.
In its latest statement, Baystate said it has made “meaningful and measurable progress” toward financial stability since November 2024 and met budget expectations last year for the first time in six years. However, the system pointed to continued headwinds, including growing demand from Medicare and Medicaid patients, rising supply and drug costs, shortfalls in the state’s Healthcare Safety Net fund and the expiration of enhanced ACA subsidies.
“During the next 12 months, our transformation journey advances beyond workforce efficiencies to decisive actions with access, hospital throughput, the physician enterprise, revenue cycle, supply chain and pharmacy,” the system said.
Baystate said it remains committed to recruiting physicians, advanced practice providers, nurses and other clinicians to meet growing community needs across Western Massachusetts.
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