Springfield, Mass.-based Baystate Health laid off employees the week of June 15 in an effort to “right-size” its team, citing a $60 million budget shortfall through late May.
Baystate comprises nearly 13,000 employees. While the system did not reveal the number of affected staff, it said in a June 19 news release shared with Becker’s that it is “purposely reducing administrative layers and directing resources to the people who deliver care every day.”
The Massachusetts Nurses Association, which comprises 26,000 members, said in a June 18 news release shared with Becker’s that the layoffs affected employees across 22 departments throughout the system, along with dozens in information technology and longtime staff.
Baystate pointed to a declining patient volume, with patients delaying non-urgent and elective care amid insurance disruptions, inflation and economic uncertainty. The health system’s payer mix is more than 70% Medicare and Medicaid, which has left it exposed to new co-pays, work requirements and enrollment changes expected under HR 1, according to a June 19 news release shared with Becker’s.
The system said it is actively recruiting nurses, patient care techs, imaging technologists and front-line clinical team members.
“Despite all the efforts to turn over every stone in Baystate Health and Health New England, those efforts alone are not sufficient to ensure our long-term financial sustainability,” the release said. “Decisions that impact our people and their families are never made lightly, and we remain committed to treating every team member consistent with our mission and core values.”
The news comes after Baystate shared plans to expand its partnership with Oracle Health this week to deploy AI-powered tools and a new EHR system across its hospitals, practices and health plan. The system has not indicated the two developments are related.
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