FOR IMMEDIATE RELEASE
October 12, 2010
Contact: Rob Brogna
Worcester, MA - UMass Memorial Health Care announced today that it is reducing its current workforce by about 350 full-time equivalent positions. The moves are necessary due to a combination of factors, including decreased reimbursement rates from both governmental and private payors, an industry-wide volume shift from inpatient to outpatient services, rising expenses for medical supplies and medications, salaries and benefits, and technology and equipment, and flat volumes attributed to economic factors such as the current recession and period of high unemployment.
“Providing quality, safe care to our patients and to the community is essential to UMass Memorial Health Care,” said John O’Brien, president and CEO of UMass Memorial Health Care. “We must continue to reduce costs while never sacrificing that quality care. By addressing these challenges today, we are positioning ourselves to be financially sound for the long-term. Through thoughtful and difficult decision-making and with deep regret we must make these job eliminations.”
Most of the reductions are taking place at UMass Memorial Medical Center in Worcester, however HealthAlliance Hospital in Leominster eliminated 42 of the positions last month. The majority of the positions affected are administrative/nonclinical.
The FTE reductions will result in a savings of $27.6 M in salaries and benefits. UMass Memorial Health Care employs 13,700 people and has annual revenues of $2.5 billion. In addition to UMass Memorial Medical Center and HealthAlliance Hospital, the system includes Clinton Hospital, Marlborough Hospital and Wing Memorial Hospital (Palmer).
The reductions will be made through the following means:
- Eliminating 120 currently vacant positions
- Reducing the work hours of some staff rather than eliminating their positions entirely. The savings translates to about 100 FTEs
- Laying off 130 FTEs
# # #