By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    bowl of vegetable salad
    Raw Foods: benefits and harms
    November 9, 2021
    pros and cons of the keto diet
    Read This Before You Follow the Keto Diet
    May 18, 2022
    spinal cord injuries
    4 Potential Causes of Spinal Cord Injuries (and How to Seek Compensation)
    May 25, 2022
    Latest News
    5 Steps to a Promising Career as a Healthcare Administrator
    July 31, 2025
    Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
    July 20, 2025
    How Probate Planning Shapes the Future of Your Estate and Family Care
    July 17, 2025
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Effective Healthcare Requires a Social Approach
    June 15, 2015
    CCBHCs
    2016 Excellence in Behavioral Health Program Design
    February 23, 2016
    conducting Clinical Trial
    5 Tips for Conducting a Clinical Trial
    April 21, 2024
    Latest News
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
    How Health Choices and Legal Actions Intersect After an Injury
    July 17, 2025
    How communities and healthcare providers can address slip and fall injuries with legal awareness
    July 17, 2025
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Baystate Staff Cuts Highlight Hospital Demographic Challenges
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Hospital Administration > Baystate Staff Cuts Highlight Hospital Demographic Challenges
BusinessHospital Administration

Baystate Staff Cuts Highlight Hospital Demographic Challenges

Thomas Pane
Thomas Pane
Share
4 Min Read
SHARE

Another hospital system has announced job cuts.  This time, it was Baystate Health System, which announced a reduction of 354 jobs, or 3.5% of its payroll.  The Boston Globe article describes the hospital suffering a $25m shortfall, blamed on lowered state Medicaid support.

Another hospital system has announced job cuts.  This time, it was Baystate Health System, which announced a reduction of 354 jobs, or 3.5% of its payroll.  The Boston Globe article describes the hospital suffering a $25m shortfall, blamed on lowered state Medicaid support.

Only 169 of the quoted 354 jobs involve flesh-and-blood layoffs, with the balance coming from the elimination of open positions.  Baystate is the latest in a series of medical centers that have trimmed positions in the 3% range.  Each center faces common challenges from the changes likely to come under health reform, but these are superimposed upon the environment particular to the individual entities.

Having spent five tough, but ultimately rewarding years at this particular medical center, I can speculate on two of the issues likely facing Baystate.  The first item is probably more significant, though both are challenging to tackle.

More Read

Report: Branded Drug Use Sharply Down, Generics Way Up
Marketing Medical Devices to Consumers, Not Patients
What the Leader of the World’s Largest Medical Device Community Says About Marketing
What Is Your Online Marketing Data Trying to Tell You?
Off-Label Drug Promotion and the First Amendment

1)       Difficult demographics:   Baystate is located in the Hampden County city of Springfield, tucked out in western Massachusetts.  Its a classic New England locale, but the surrounding population’s economic profile is lower than the rest of the state by a significant margin.  The article notes that 26% of the patients are on Medicaid.  I would term that as accurate or possibly even a low estimate.  According to 2010 data, 17.2% of the county is below the poverty level, which is almost 7% more than the state average.  Per capita and household incomes are both about 27% lower than the state average.  This means that the hospital’s fortunes are tied greatly to what happens to Medicaid funding, and right now that funding is under pressure until (and if) it is raised under health reform

2)      Patient Drain:    There is some drain of area patients to centers in Boston, and occasionally Worcester.  I don’t have exact data, and this phenomenon is not unique to Massachusetts.  But the effect is probably worse in smaller states.  A 90 minute ride to Boston is far easier than a midwesterner driving 10 hours to the Mayo Clinic.  There isn’t good evidence that these centers provide better care except for exotic services that only they provide.  Baystate can do almost (but not quite) everything that Boston can.  It’s a good idea to identify the routine services leaving the area and work on keeping that care local.  Also, those leaving the area for care likely are well insured, and hail from the affluent suburbs.

On the plus side, Baystate is the flagship hospital for the region, and is affiliated with an academic medical center.  It draws from most of the area including the border areas with New York, Vermont, and Connecticut.  It has been well managed and has not been subjected to large financial shocks.

Hospitals can’t do much about regional demographics, and influencing Medicaid funding is difficult.  Managers are thus focusing on the levers that are under their control, namely operations and payroll.  But the challenges faced by hospitals such as Baystate are just a prelude to what may be required once the effects of the health reform legislation start to unfold.

Related articles
  • Hospital network cutting 354 positions (boston.com)
  • More Hospital Layoffs in Massachusetts and Mergers – Operating Income Funded A Lot of Technology Upgrades – Close To $49 Million (ducknetweb.blogspot.com)

   

TAGGED:Baystate Health Systemhospitalsjob cuts
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

5 Steps to a Promising Career as a Healthcare Administrator
5 Steps to a Promising Career as a Healthcare Administrator
Health
July 31, 2025
holistic dental
Holistic Dentist Services Are Natural and Safe
Dental health Specialties
July 28, 2025
botox certification
Help Improve People’s Skin Health Via Botox Certification
Skin Specialties
July 22, 2025
Telemedicine Apps
Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
Health
July 20, 2025

You Might also Like

Observation Units
BusinessFinanceHospital Administration

Observation Units: Bridging the Gap Between Inpatient and Outpatient

April 7, 2014
collaborative conflict in healthcare
Hospital Administration

Collaborative Conflict

December 12, 2013

It’s Back to Basics in Nursing Homes in Treating Disease

November 9, 2011

Hospitals: Take Down Those Walls!

October 12, 2012
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?