Baystate Health announced this week it's laying off 134 employees in management positions, about 1% of its workforce.
The not-for-profit said the layoffs across all of its hospitals will improve efficiency and "reduce costs without impacting bedside care."
The announcement comes nearly six weeks after CEO Peter Banko issued a statement saying Baystate has had more than $300 million in operational losses in the past few years.
In a statement Wednesday, Baystate said, "This weakened financial position has severely limited our organization, especially our ability to invest in our people and grow to meet community needs."
By making these changes and others, Baystate said it will be able to invest $1.2 billion into the organization in the next six years.
Medicare and Medicaid patients make up most of the health system's revenue and Baystate said neither adequately covers the cost of care.
Marissa Potter, a leader in the nurse's union, the Massachusetts Nurses Association, said she hopes Baystate Health does not lay off supervisors who support staff working directly with patients.
"I think it's really important that they not eliminate direct unit managers and critical management personnel who are with us on the units and providing daily support and guidance to the nurses and staff on the floor," Potter said.
"It's not unusual in my unit for my direct manager to put on scrubs and help us out in an emergency and take care of patients hands on," she added.
Potter, an RN who works in labor and delivery at Baystate Franklin Medical Center, said she is not an expert in healthcare finance, but she is hopeful the changes will allow Baystate to operate a little more efficiently.
She said she urges Baystate to hire more ancillary staff, such as certified nurse assistants, "especially on our medical floors and in our ICUs. We are understaffed when it comes to support like that."
Baystate said it is still recruiting and hiring physicians, caregivers, and other "advanced practice providers," which generally includes nurse practitioners and physician assistants.
