Baystate Health System to lay off 300 employees

Springfield, Mass.-based Baystate Health will lay off roughly 300 people as a result of a projected $75 million budget shortfall, according to the Boston Business Journal.

The reduction, which will eliminate approximately $40 million in expenses, represents 2.4 percent of Baystate's 12,500-person workforce, according to the report. The health system will still face a $15 million budget gap after the layoffs.

"We'll continue our work to address this gap and do all we can to preserve jobs," Mark A. Keroack, MD, president and CEO of Baystate Health, said in a press release, according to the report.

Baystate's budget shortfall is multifactoral, with causes including lowered reimbursement from Medicaid and a math error caused by Boston-based Partners HealthCare, which will lead to Baystate losing $23 million in Medicare payments from the federal government, according to the report.

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