Tufts to eliminate 240 positions, save $22M

Boston-based Tufts Medicine aims to save $22 million annually through workforce reductions, according to The Boston Globe.

"Like many health systems in the Commonwealth and across the country, Tufts Medicine has experienced significant financial challenges due to post pandemic capacity constraints, reliance on higher cost contract labor, especially in nursing, and delays in discharging patients for post-acute care," reads a statement from Tufts to Becker's. "While we have diligently implemented cost-controlling measures across the system, we must now make the incredibly difficult decision to reduce our workforce."

The health system reported $398.6 million operating loss for the year's end in September and plans to lay off 70 people, primarily in administrative positions, and eliminate 170 vacant roles. To lower temporary labor costs, the system also aims to fill 1,000 clinical positions, according to the report.

"This decision will not affect the delivery of patient care. Tufts Medicine will continue to work closely with external partners to address the financial crisis impacting the entire healthcare system," reads the statement from Tufts.

Tufts executives attributed the system's challenging financial situation to shrinking commercial reimbursements and the high percentage of government payers it serves. Tufts also reported costs to install a new EHR system hit around $70 million.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars