After public financial support for both hospitals was cut to redirect money to other reform needs, Boston Medical Center sued state officials, alleging the officials had illegally cut payments for treating poor patients. Now the hospital says it will cut 119 jobs or else end the fiscal year on Sept. 30 with $170 million in losses.
Boston Medical may receive a special Medicaid payment of $90 billion that state officials requested from the federal government, which would reduce the hospitals’ deficit, according to the report.
On the other hand, Cambridge Health Alliance responded to the financial cuts by cutting 450 jobs and trying to impose a 40 percent in retiree health benefits for nurses, which the state Employment Relations Board later found to be illegal. The CHA also closed six of 26 health centers and is now looking at a merger with a larger provider.
Read the Boston Globe report on Cambridge Health Alliance and Boston Medical Center.
Read more on hospital finances:
–HHS Awards $130M in Grants for Healthcare Workforce
–Hospital Prices Up 0.5% in August
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