Cambridge (Mass.) Health Alliance is laying off 69 employees, reducing the hours of 15 others and eliminating 170 open positions in response to ongoing financial and operational pressures, including inflation and staff shortages, according to The Boston Globe.
The reductions are primarily in management, administrative and support areas, a spokesperson for the health system told Becker's.
Cambridge Health Alliance, which has about 4,800 employees, said it will continue to hire — particularly for primary care and behavioral health roles. The health system also plans to rehire more than half of the employees that were let go into new positions.
Reducing costs and improving efficiency are necessary to close CHS' budget deficit and ensure its long-term sustainability, according to the health system. Reductions in non-salary expenses, including consulting, marketing, sponsorships, and other purchased services and supplies, are also built into its fiscal year 2024 budget.
Additionally, CHA is focused on expanding its primary and specialty care access and increasing capacity for inpatient and outpatient behavioral health services, which are in high demand across the region.
"This was an extremely difficult decision," CEO Assaad Sayah, MD, said. "We explored every avenue possible to avoid making these changes but were unable to reduce our budget deficit without impacting our workforce. I am grateful for everyone who has worked to advance the organization's mission, and we are committed to supporting all affected employees, managers, and their colleagues throughout this process."