Springfield, Mass.-based Baystate Health plans to lay off 43 employees following a workforce reduction of less than 1% in February.
The positions were selected to minimize the effect on direct patient care, according to a statement from President and CEO Peter Banko shared with Becker’s on April 29. Discussions with affected employees will be completed by May 2. Eligible employees not transitioned to another role within the system will receive severance pay and job support, including access to career transition services.
Baystate has reduced its workforce by 7% since November, with 60% of those reductions through attrition, according to the statement. The system most recently eliminated 98 corporate positions in February, which represented less than 1% of its workforce.
“We deeply understand the profound effect these transitions have on our people, their families, and our community as the anchor employer in Western Massachusetts,” Mr. Banko said. “We continue to aggressively recruit, hire and retain physicians, advanced practice providers and bedside caregivers.”
The system has seen “measurable progress” since launching its core operations improvement effort in October, with four consecutive months of positive operating margin and cash flow, according to the statement. The system is working on redesigns in its revenue cycle management, supply chain and pharmacy departments and will begin planning for fiscal 2026 in the summer with a focus on care management — including length-of-stay management — and Baystate Medical Practices.
Baystate is also implementing a new strategic plan aimed at hospital and service line growth as well as employee engagement, Mr. Banko said.
