WORCESTER, Mass.—UMass Memorial Health Care said it plans to cut 140 full-time positions in an ongoing effort to reduce a $50 million financial gap. The health system announced in February that it could eliminate up to 900 positions to reduce expenses by $50 million. In a Sept. 25 letter to staff, UMass Memorial President and CEO John O’Brien said about 150 full-time positions have already been eliminated. However, the system has faced “significant volume declines” in certain inpatient services and declining reimbursements since February that “continue to threaten our ability to end this fiscal year with an operating margin that breaks even,” O’Brien said in the letter. The newly announced job cuts include clinical positions in the medical center and medical group, as well as administrative positions. “While we have made substantial progress—expense reductions totaling about $20 million on an annualized basis—more is necessary,” O’Brien wrote. The effort to cut costs also includes selling two business units and reducing supply costs. The health system said it completed its sale of UMass Memorial Medical Center Home Health and Hospice to VNA Care Network & Hospice in September and is “making progress” in the sale of its lab testing business. Financial terms of the deal with VNA were not disclosed, according to a spokesman for UMass Memorial. The system also reported that it has saved $1.6 million in pharmacy expenses by changing protocols and replacing higher-cost drugs, and $1.1 million in medical and surgical costs, in part by standardizing gloves. O’Brien has said he expects to retire in January.
Regional News/Northeast: UMass Memorial to cut 140 full-time positions
Send us a letter