Springfield, Mass.-based Baystate Health plans to lay off an unspecified number of managers by Thanksgiving, The Boston Globe reported Oct. 18.
Five things to know:
1. Baystate President and CEO Peter Banko told the Globe that the health system has been losing money and needs to lower costs. The system is expected to disclose the exact number of layoffs in two to three weeks.
2. The system lost $63 million in 2023 and $177 million in 2022, according to the report. Mr. Bank said the system would have lost $60 million in 2024 if it hadn't sold a lab to Labcorp for more than $133 million.
3. Mr. Banko said that the system's expenses have been growing faster than its revenue. More than 70% of its patients are Medicaid or Medicare beneficiaries, and Mr. Banko said neither government payer adequately reimburses Baystate for the cost of care.
4. The system is aiming to generate more than $225 million in savings and new revenue over the next two years. That plan includes cutting labor costs, but Mr. Banko said the system would not reduce patient services.
5. The Globe reported in September that three top executives would depart Baystate on Oct. 23. No explanation was shared for why the executives are leaving the health system. Those executives are Chief Information and Digital Officer Kevin Conway, Chief Human Resources Officer Kristin Morales-Lemieux and Chief Quality Officer Doug Salvador, MD.
Baystate did not immediately return a message from Becker's seeking comment on the layoffs.