Beth Israel Lahey Health is eliminating jobs as it navigates rising costs, a spokesperson for the Cambridge, Mass.-based system confirmed to Becker's Sept. 28.
The health system, which operates 14 hospitals, did not say how many or which roles would be affected. In Massachusetts, employers are generally required to file a WARN notice when a layoff affects 50 or more employees at least 60 days prior to job cuts taking effect. The system did not address whether the layoffs would trigger a notice.
"Like healthcare providers across the country, BILH is facing significant cost increases, a limited reimbursement environment and changing patient care trends," a spokesperson said in a statement Sept. 28.
"Despite these challenges, BILH remains committed to our mission of delivering high-quality care in the communities we serve. At the local level, hospital leaders have identified opportunities to restructure staff roles, including eliminating some positions, to best meet local healthcare needs in a sustainable way. We continue to prioritize patient care and make investments that deliver on our commitment to community health."
Some unionized nurses at three BILH hospitals were laid off, but are eligible for other jobs within the health system, the Massachusetts Nurses Association told The Boston Globe, which also reported that 22 nurse managers at Beth Israel Deaconess Hospital-Plymouth were affected. The nurse managers were not union members. Becker's has also reached out to the state's nurses association and will update the report as more information becomes available.
The health system reported a $110 million operating loss for the nine-month period ending in June 2024, according to financial documents published in August. Beth Israel Lahey Health reported a $23.3 million operating loss (-1% margin) for the three months ended June 30, up from the $15.3 million loss (-0.8% margin) for the same period in 2023.
News of the layoffs comes as Beth Israel Lahey Health faces scrutiny from the New Hampshire attorney general over its plans to cut services at Exeter Hospital, which it acquired in 2023. On Sept. 25, the health system agreed to delay planned service cuts for up to six months.
Beth Israel Lahey Health employs more than 4,700 physicians and 39,000 employees.