Massachusetts hospital to lay off 56 employees, warns of more cuts

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Lawrence (Mass.) General Hospital plans to lay off 56 employees and is warning of more cuts unless it receives government aid quickly, according to The Boston Globe.

The layoffs will affect employees working in administration and patient care. The layoffs affect about 2.5 percent of the 186-bed hospital's workforce. 

Lawrence General attributed the layoffs to the COVID-19 pandemic weakening its financial profile. 

"We were weak going into COVID, and now we're weaker coming out of COVID," Lawrence General President and CEO Deborah Wilson told the Globe. "It’s an unsustainable situation."

Ms. Wilson is warning that the hospital needs an infusion of at least $10 million in state or federal aid in the coming months or it will need to make further cuts to remain in compliance with a bond covenant. 

While Lawrence General received $44 million in federal aid and $17 million from the state last year, it was not enough, according to Ms. Wilson. She added that the hospital hasn't qualified for more payments since last summer.

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