The layoffs, the largest in the Somerville, Mass.-based health system’s history, were announced in early February. The workforce cuts stem from “the same unrelenting pressures affecting many healthcare systems across the country,” as the system faces a projected budget gap of $250 million within two years, a spokesperson told Becker’s.
Mass General Brigham, the largest health system in the state, said the layoffs primarily affect nonclinical and nonpatient-facing roles to “enhance efficiency, reduce costs and maximize support for front-line clinicians.”
Certain management and administrative positions are also being consolidated, according to the report. Other vacant positions will remain unfilled.
All notifications to workers being laid off will occur this week, CEO Anne Klibanski said in a March 10 letter to employees obtained by the Globe. Affected workers will receive benefits coverage and market-competitive severance packages, according to the system.
“This decision was reached by clinical, academic and administrative leaders from across our system after thoughtfully considering the current healthcare landscape and our poor financial performance over the past several years,” Ms. Klibanski wrote. “As we look to the future, we will continue to build a culture of resource stewardship and financial sustainability that enables us to withstand the unrelenting pressures facing healthcare systems everywhere and allows us to continue with critical planned and future investments to support our patients, our care teams and our mission.”
Mass General Brigham reported a $72 million operating loss (-0.4% margin) on $5.4 billion in revenue in fiscal 2024, compared to a $48 million loss (-0.3% margin) for the previous fiscal year. The loss came despite “an intense focus on cost management while pursuing new sources of revenue,” CFO and Treasurer Niyum Gandhi said in a Dec. 18 report.
Financial headwinds and capacity challenges contributed to further operating losses in the first quarter of fiscal 2025, the three months ending Dec. 31. Mass General Brigham posted an operating loss of $54 million (-1% operating margin), compared to a $32 million operating loss (-0.7% operating margin) in the same quarter the previous year.
Mass General Brigham did not immediately respond to Becker’s request for comment.
