Baystate Health will be laying off 354 jobs due to budget shortfalls. As you can read the system has 60 medic practices and an ambulance company but the profits were eaten by technology, so this if nothing else gives you an idea of how much Health IT is costing today at hospitals and medical centers. Medicaid reimbursements are another reason for the shortfalls with 26 percent of the patient population falling into this category. Baystate Health is the largest employer in western Massachusetts.
In other news in the state Lahey Clinic is Merging with Northeast Health System and the new company will be called Lahey Health System. Beth Israel Deaconess, Vanguard Health Systems and Steward Health Care were also interested in acquiring Northeast. This seems to be a sign of the times and Massachusetts is not the only state affected as it is being felt all over the country.
I read all types of news in healthcare and technology every day and by comparison when I see $26 million thrown at a start up social network or gaming company for around the same amount of $26 million with investors, it really makes one wonder where the entire country is going and where the real priorities lie. There was one tech company that even the geeks were talking about that drew $40 million and they didn’t even have the entire software program set up to run yet, so how long before the investor algorithm dollars run out or everyone loses enough money. The odds are 1 out of 100 make it, so thus the jobs created only end up being temporary and those millions spent down the drain sure could buy a lot of healthcare.
Those who can’t get healthcare though will have an over abundance of social networks and games to keep them busy so they won’t have to think about being sick or tend to any preventive health issues, sad to say. We seem to be a little off balance these days with priorities. BD
Baystate Health, the Springfield parent of Bay State Medical Center and two other Western Massachusetts hospitals, yesterday said it will shed 354 jobs, or about 3.5 percent of its 10,064-person payroll, to make up for a projected $25 million budget shortfall.
“After engaging in strategies to increase revenue and reduce expenses, this was the last resort so we could be financially viable,’’ said Baystate spokeswoman Jane S. Albert. “We have an obligation to meet our budget targets because we have to reinvest in our facilities.’’
The system as a whole, which also owns 60 medical practices, an ambulance company, and other operations, had operating income of $49 million, but that money is used to fund technology upgrades and capital improvements.