New Bedford, Mass.-based Southcoast Health System informed approximately 50 employees Friday that their positions will be cut.
Peter Cohenno, a Southcoast Health spokesperson, confirmed the news in an emailed statement to Becker's, citing the organization's financial struggles. The four-hospital system's operating loss doubled in the first half of fiscal year 2017 to $19.3 million compared to the same period of fiscal year 2016. By the end of fiscal year 2017, the health system reported a $38 million operating loss, which Mr. Cohenno said includes restructuring costs and higher-than-anticipated losses from the Southcoast Physicians Group.
"Our leadership made very difficult decisions related to actions that will reduce costs and achieve operational efficiencies," he wrote in the statement.
"We carefully and thoughtfully reviewed the timing of this decision along with our organization’s financial needs. We determined that it was in the best interest of those impacted to make this decision prior to the holidays as opposed to immediately thereafter."
He noted the job cuts, which will take place across the system, come after nearly 200 eligible employees accepted voluntary buyouts.
The savings from the buyouts are "significant," he said, but Southcoast Health expects it will need to fill some open positions and hopes to do so with employees affected by the job cuts.
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