Southbridge, Mass.-based Harrington HealthCare System cut its workforce by 1.5 percent last week, resulting in the layoff of 23 employees, according to the Telegram & Gazette.
The system has also come up with a new organizational structure.
In the report, Harrington President and CEO Edward Moore attributes the changes — which primarily target nonclinical care as part of a management restructuring initiative — to an $8.2 million operating loss in the fiscal year that ended Sept. 30. He told the Telegram & Gazette, "We're trying to be disciplined and make sure that the $8 million loss catches our attention to make changes, so that the loss gets down to break-even or better."
He added, "We want to remain viable and sustainable by getting our house in order relative to how much staff we can afford to carry based on volumes, and how much overhead we need in management to keep this place doing all the great things it does."
Harrington revealed 17 of the employees affected by the layoffs were managers and supervisors, including three of Mr. Moore's direct reports.
Even with the changes, Mr. Moore remained optimistic in the report, saying the system’s balance sheet is strong and that he expects to see “significant savings” by 2019.