North Shore Medical Center in Salem, Mass., which includes two campuses and is part of Boston-based Partners HealthCare, plans to lay off employees to help overcome financial losses, according to The Salem News.
North Shore Medical Center recorded a $36 million loss in fiscal year 2015, and its deficit grew to $48 million in FY 2016. In a Feb. 15 letter to employees, North Shore Medical Center Interim CEO Gregg S. Meyer, MD, said the organization is on track to lose even more money this year unless significant changes are made, according to the report.
In the letter, Dr. Meyer outlined NSMC's plan to slash its operating budget by $45 million over the next two years, which will put the organization on a path to break even by FY 2019. To reduce its operating budget, NSMC will first focus on cutting expenses and improving efficiency. This will involve some job cuts. On Thursday, a hospital spokesperson told The Salem News NSMC expects to lay off fewer than 200 workers.
To balance its budget, NSMC also plans to make changes to purchasing and revenue cycle practices and focus on service line development, according to the report.
NSMC's financial stabilization plan is part of Partners' systemwide strategy to improve efficiency. Partners ended FY 2016 with an operating loss of $108 million — the biggest operating loss in the system's history, according to the Boston Globe.
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