Mass Normal Brigham introduced mass layoffs aimed to bridge a $250 million price range hole projected over the following two years in a letter to workers Monday — which means doubtlessly a whole lot of firings could also be shortly coming down the road.
“Today, we begin a strategic reorganization across all parts of Mass General Brigham that will result in the elimination, consolidation or rescoping of a number of management and administrative positions — focused on non-clinical and non-patient facing roles,” MGB President and CEO Anne Klibanski wrote in an e-mail to workers Monday morning. “We will complete this reorganization in March.”
Mass Normal Brigham (MGB) management declined to say what number of positions could also be laid off or a timeline of when workers could also be notified Monday.
The MGB system, which incorporates Mass Normal Hospital and Brigham and Girls’s Hospital together with 10 different specialty and neighborhood hospitals within the state, employs over 82,000 individuals and is among the largest employers in Massachusetts, in keeping with state information.
The price range hole of $250 million is round over 2% of the hospital system’s yearly worker compensation prices, in keeping with MGB’s most current publicly reported financial impression information.
The healthcare big is “facing the same unrelenting pressures affecting many healthcare systems across the country that are contributing to a projected budget gap of a quarter of a billion dollars ($250m) within the next two years,” stated MGB Senior VP of Communications Jennifer Avenue.
“We are acting now to allow us to continue with planned and future investments,” stated Avenue. “As part of our response, we are consolidating certain management and administrative positions throughout the system.
The layoffs will focus on non-clinical and non-patient-facing staff “in an effort to enhance efficiency, reduce costs, and maximize support for frontline clinicians,” Avenue stated. MGB management stated the laid-off workers will obtain “market competitive severance packages and benefits coverage.”
Within the 2024 fiscal yr ending in September, MGB reported an total acquire of $2 billion, practically all from nonoperating exercise like investments and rate of interest swaps, in keeping with information reported by MBG in December. Likewise in fiscal yr 2023, the system additionally reported one other sizable acquire of $1.2 billion.
Regardless of the general acquire, the system reported a loss from operations of $72 million or a -0.4% working margin in 2024, excluding $118 million in income from prior yr exercise, within the monetary report. The December monetary launch highlighted a “an unrelenting capacity crisis … straining resources for health care organizations” all through Massachusetts, including the challenges “continue to curtail revenue growth.”
“This reorganization will improve efficiency, simplify decision-making and empower staff with more direct access to leadership,” Klibanski wrote within the letter to workers Monday. “Importantly, it will allow us to continue with planned and future investments in support of our patients and our mission, and to improve the lives of our clinicians and researchers.”
MGB will hold workers up to date within the coming weeks, Klibanski stated.
