Baystate Health is laying off 134 employees in management positions, about 1% of its workforce. The not-for-profit says the layoffs across all of its hospitals will improve efficiency and reduce costs without affecting bedside care. And that it's still recruiting and hiring physicians, other providers and caregivers. The announcement comes nearly six weeks after CEO Peter Banko issued a statement saying Baystate has had more than $300 million in operational losses in the past few years. This week Baystate said its 'weakened financial position' is 'severely limiting its ability to invest' in staff and meet community needs. And by making these changes and others it'll be able to invest $1.2 billion into the organization in the next six years. Medicare and Medicaid patients make up most of Baystate's revenue- and it says neither adequately covers the cost of care.
