Baystate eliminates 134 leadership roles amid transformation

Springfield, Mass.-based Baystate Health cut 134 leadership positions systemwide, reducing the workforce by less than 1% as part of a plan to transform the organization and return to financial stability.

"We are significantly decreasing management spans and layers to improve efficiency, reduce costs without impacting bedside care, streamline decision-making and better enable our caregivers," according to a statement Baystate provided to Becker's.

Some of the impacted positions are currently vacant and won't be filled while others are held by leaders who will leave Baystate. The system is working to find alternate positions for roles that were eliminated and will provide severance pay and job support to leaders who don't transition to a new internal role.

Baystate has already seen executive turnover. President and CEO Peter Banko assumed his role in June, and in September the system's chief information and digital officer, chief human resources officer and chief quality officers all exited.

"As a system, we are driving toward transformational change to deliver core operations improvements of more than $225 million over the next two years. Our $300 million in operating losses over the past few years has eroded our balance sheet, including our days cash on hand," according to the statement. "This weakened financial position has severely limited our organization, especially our ability to invest in our people and growth to meet community needs."

The changes will allow Baystate to invest $1.2 billion back into the team, renovations, growth, access to care and the community in the next six years, according to the system. Baystate is continuing to recruit and hire physicians, advanced practice providers and bedside caregivers.

Baystate will continue to evolve over the next 12 months to meet aggressive organizational goals.

"As we transition into the New Year, we are actively engaged in pulling other transformation levers in the areas of external spend and corporate overhead as well as completing assessments of our revenue cycle and real estate portfolio. Our revenue levers for transformation are focused on improving patient access, streamlining service delivery (throughput), becoming more efficient and effective in revenue cycle management and strategic growth," according to Baystate's statement.

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