Mass General Brigham is restructuring operations and cutting jobs as it grapples with a projected $250 million budget gap over the next two years.
A "limited number" of management and administrative positions will be eliminated or consolidated to reduce redundacies and create more efficiency, Mass General Brigham said in a Monday news release. The restructuring will be completed in March, the system said.
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"If we do not take definitive action now to stabilize our financial health, we compromise our ability to continue to invest in our mission," President and CEO Dr. Anne Klibanski said in a message to employees. "This decision was reached by clinical, academic and administrative leaders from across our system after thoughtfully considering the current healthcare landscape and our poor financial performance over the past several years."
Mass General Brigham had not filed a Worker Adjustment and Retraining Notification for the layoffs as of Monday afternoon and did not provide additional detail on the number of layoffs expected.
The announcement comes less than a year after Mass General Brigham began merging the clinical departments and academic programs at Massachusetts General Hospital and Brigham and Women’s Hospital to streamline operations.
Boston-based Mass General Brigham has been battling financial challenges for years, citing capacity constraints, inefficient operations and rising expenses as key drivers. The system reported $2 billion in net income in its fiscal 2024, but the gains were mostly due to investments. Operating losses totaled $72 million for the year, compared with a $48 million operating loss in fiscal 2023.
Massachusetts had also been critical of the system. Last year, Mass General Brigham successfully completed an 18-month performance improvement plan, including more than $197 million in cost savings during that period. Most of those savings came from price reductions. The plan was implemented in October 2022 after state policymakers raised concerns about the system's excessive spending.
