Nonprofit Mass. Health Group Sheds Jobs, Blames Shrinking State Payments

Massachusetts hospital operator Baystate Health announced Wednesday that it is eliminating 354 jobs and pinned the move on insufficient state Medicaid reimbursements, State House News Service reports.

The nonprofit system, which runs three hospitals in the western part of the state, is projecting a $25-million budget deficit. Baystate officials said the organization’s institutions were underpaid $26.5-million last year for treatment of Medicaid recipients, who represent more than a quarter of their patients.

The state budget signed last week by Gov. Deval Patrick calls for $750-million in savings from Medicaid.

“Massachusetts has expanded and enhanced health care for our residents, which we applaud–but the commonwealth is not paying for these commitments,” said Mark Tolosky, chief executive of Baystate.

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