Providence, R.I.-based Lifespan said it has laid off 55 employees and hundreds of its employees have agreed to early retirements as the nonprofit health system restructures amid financial struggles.
Lifespan offered early retirements to 400 eligible employees; 216 accepted and will leave on March 28, according to President and CEO Timothy Babineau, MD.
The health system also laid off 55 people and cut 24 vacant positions. Eight corporate positions were cut as part of the health system's early retirement program.
The announcement of layoffs and early retirements comes amid the new coronavirus pandemic and comes after the company reported significant operating losses in the fiscal year ended Sept. 30. Lifespan reported operating losses of $55 million in fiscal year 2019, and the company's net loss totaled $35 million.
Dr. Babineau said the organization has been "working on a restructuring strategy in recognition of the uniquely difficult market in which we operate."
He said nearly 70 percent of Lifespan patients have public insurance (Medicare or Medicaid) — which does not cover care costs.
These financial challenges began before the pandemic, but amid the outbreak, Lifespan is reminded "of the unique, essential and lifesaving role our doctors, nurses and all our healthcare providers play in caring for our community," he said. "Lifespan's viability as an essential community asset requires financial stability to ensure we can continue as the state’s largest and most important healthcare system."
He said the job cuts are regrettable but necessary, in addition to the early retirements, to restructure and achieve financial stability. Affected employees will have the chance to apply for open jobs within the health system.
Lifespan said restructuring efforts will continue systemwide throughout this year.