Mass. General Brigham planning hundreds of layoffs, citing $250M budget deficit

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Phil Tenser

Digital Media Manager

 

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BOSTON —

Mass. General Brigham, the largest private employer in Massachusetts, is planning hundreds of layoffs citing a huge budget deficit.

President and CEO Anne Klibanski said in a letter to employees that the reorganization would involve the "elimination, consolidation or rescoping of a number of management and administrative positions."

 

Affected employees will be offered severance packages and benefits, the hospital said in a statement.

Klibanski's letter said the reorganization will be completed in March.

"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," she wrote. "This reorganization will improve efficiency, simplify decision making and empower staff with more direct access to leadership."

A spokesperson said that MGB's projected budget gap is $250 million.

"We are acting now to allow us to continue with planned and future investments," the statement said.

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Full MGB Statement:

“As a not-for-profit integrated healthcare system, Mass General Brigham is firmly committed to investing in our mission of patient care and quality outcomes, research, education, and improving the health in underserved communities. We are also facing the same unrelenting pressures affecting many health care 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. We are acting now to allow us to continue with planned and future investments.

"As part of our response, we are consolidating certain management and administrative positions throughout the system. These actions are primarily focused on non-clinical and non-patient facing roles in an effort to enhance efficiency, reduce costs, and maximize support for frontline clinicians. This decision is necessary despite years of diligently promoting a culture of responsible resource stewardship and developing initiatives that generate diversified sources of revenue.

"We recognize the impact that this difficult decision will have on our impacted employees and Mass General Brigham is providing market competitive severance packages and benefits coverage to them. We are grateful for the contributions of these colleagues and the value that all our employees bring to our organization each and every day.

"Providing unparalleled access to the highest-quality care and groundbreaking treatments demands critical investment and will require us to manage our operations and financial health with the same precision and innovation that we apply to patient care, research, and education. The steps we are taking now to evolve our organization will play a critical role in ensuring that Mass General Brigham continues to lead, innovate, and transform the future of healthcare for the benefit of everyone."