Rob Weisman at the Boston Globe reports here:
UMass Memorial Health Care, which lost money in the last three months of 2011 amid shrinking patient volume, is telling employees today that it will shed 700 to 900 jobs, about 6 percent of its workforce, through a combination of layoffs at its flagship Worcester hospital and by selling divisions that provide health services.
The health care system, which operates UMass Memorial Medical Center and four community hospitals, is the largest employer in central Massachusetts with about 13,500 workers. But its profitability has been eroding for several years even as it faces increasing pressure from businesses and commercial insurers to reduce costs.
Here’s the UMass Memorial press release:
UMass Memorial Health Care to Reduce Costs
February 1, 2012
Worcester, MA – Leaders from UMass Memorial Health Care, Central New England’s largest health care system, today announced that it is taking action to adjust its operations in response to declining volumes and reimbursements, as it works to become more affordable for its patients while maintaining and increasing the quality of care.
In a letter to employees, John O’Brien, president and CEO of the UMass Memorial Health Care, said the system needs to reduce expenses by about $50 million right away if we are going to avoid ending the current fiscal year with a loss. Continue reading