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Boston Medical Center to lay off or cut hours of 250 people

Posted by Elizabeth Cooney December 17, 2008 11:00 AM

Boston Medical Center will lay off or cut the hours of 250 employees and reduce other spending to cope with cuts in payments from the state for the services it provides, the hospital announced this morning.

The job and hours cuts will eliminate the equivalent of 130 full-time positions, saving $10.5 million. The hospital has begun notifying staffers who will lose their jobs, hospital spokeswoman Ellen Berlin said in an interview. Clinical and administrative services are affected, including obstetrics, primary care, pediatrics, family medicine, geriatrics, laboratory, radiology, nursing, endoscopy, urology, and ophthalmology. Interpreter services, information techology, public safety, and dietary services are also seeing cuts.

The hospital is looking to save a total of $61.5 million. It has lost $114 million from lower state payments for Medicaid and other patients for fiscal 2009. More than half of Boston Medical Center's patients are low-income, for whose care the state pays 64 cents for each dollar in costs, the hospital said.

"When the state made the recent cuts to close the budget gap – and the administration cut Medicaid and health care funds as much as they did – Boston Medical Center felt more than its fair share of the pain,” Elaine Ullian, Boston Medical Center president and CEO, said in a statement.

BMC will also trim $14 million in non-salary support it provides to physicians, such as insurance coverage. And it will end its support of Quincy Medical Center, saving $2 million.

Capital spending will be cut by at least 35 percent and some major projects will be deferred to save $35 million.

More cuts are likely, the hospital said, even though the hospital is seeing record numbers of patients.

21 comments so far...
  1. they were just hiring ??? what is going to happen with the new hires! this is crazy.

    Posted by gary December 17, 08 11:52 AM
  1. This isn't good news for me. I go to BMC to get my boils lanced.

    Posted by will December 17, 08 11:58 AM
  1. This is terrible news. No other hospital in Boston does what BMC does for the city and for the region. In these tough times, places like BMC need more support, not less.

    Posted by JP Gal December 17, 08 12:02 PM
  1. It's too bad that they have to cut jobs when an organizational change and adopting the same cost saving practices that private hospitals/businesses utilize could save the hospital millions. They still operate as a city department for all intensive purposes with little to no incentive for cost saving or good business practices. It's a shame.

    Posted by South Shore Resident December 17, 08 12:14 PM
  1. I thought all those newly insured Massachusetts residents would increase the payments made to hospitals. Doesn't seem to add up?

    Posted by Kevin December 17, 08 12:26 PM
  1. This is the first step in the state sponsored take cover of the healthcare system by Partners Healthcare. It will be interesting to see if Man's Greatest Hospital as well as the Brigham's can begin to handle the increased emergency room load as the other area emergency rooms cut back. In fact, it may be more cost effective for Boston City and Cambridge Health to pay for ambulance service to transport their patients to the Partners' emergency rooms and let Partners negotiate the reimbursements since they already get an unfair kickback from the HMO's. Let the Partners emergency rooms get flooded with the low income patients that they refuse to serve in order to cater to the US News reports!!

    Posted by Par T Ners December 17, 08 12:28 PM
  1. Maybe instead off laying of positions which invole direct patient care, positions such as CEOs should take a pay cut. Did I not read that the CEO of BMC made 1 million dollars last year? You can't tell me her life whoudl be draststically impacted by going to 500,000, which would save some patient care positions.
    Do they really need to have the flowers outside replaced every few months? Is there a benefit to patient care by having a landscaped lawn? I do not think that the CEOs really care about how these cuts will impact patient care. Boston Medical saves lives and it is not the "suits" that do it!

    Posted by Kate Vernoicia December 17, 08 12:32 PM
  1. thank you Patrick Duvall

    Posted by diane upshaw December 17, 08 12:37 PM
  1. I hope my girlfriend's job won't be cut out as well. She's the NICU unit coordinator over there.

    Posted by DI$CO December 17, 08 12:43 PM
  1. What aboud a decrease in Elaine Ullian, salarary from $1.37 million back to $885,901. I know she does an exceptinonal job, but a decrase in the salary might save a few postions.

    Posted by Lizzy December 17, 08 12:54 PM
  1. I hope the hospital general counsel's office can work out something with the family court judges who will no doubt be called upon to lower alimony payments that people who lose their jobs must continue to pay. Such occurrences are one of the results of the draconian system of lifetime alimony in Massachusetts. Now, throughout the state, thousands of people who've lost their jobs will be forced to return to court and petition the courts to lower their payments. Since few courts ever eliminate payments, lowering is the best hope people have.
    Sadly - tragically - most divorced women in Massachusetts are never expected to become self-sufficient . THe results are this: that when their money supplies (ie ex-husbands) lose their jobs through no fault of their own, the entire system breaks down.
    When will the legislature make Mass laws like those of the rest of the country????

    Posted by Disgusted December 17, 08 01:09 PM
  1. Tufts Medical Center is reducing spending too.
    Tufts Medical Center is stealing back vacation time from dedicated employees who worked through layoffs, a hiring freeze, staff shortages.
    This is their reward for being dedicated and responsible employees, who show up to work each day.

    Posted by wtl December 17, 08 01:13 PM
  1. Will Ellaine Ullian make 1.37 million dollars this year...or will her raise be less than the 54 percent she got in 2006?????? Im sure if we scaled back the management spending some people could keep their jobs, and our executives would still be well reimbursed,

    Posted by anne December 17, 08 01:26 PM
  1. THis is such a sad story. I am so sorry to read this. It's terrifying to imagine whose jobs will go next.

    Posted by Edy Bennett December 17, 08 01:35 PM
  1. George and Paul if I were you I would becareful how to ran the hospital at the taxes
    payer's expenses, the position you are holding can not afford to be nicey nicey
    you know that. I don't like what I see and I am glad I don't make my living off
    the hospial so.

    Posted by stephanie December 17, 08 02:06 PM
  1. Boston Medical Center is a hospital that primarily serves minorities and individuals of lower socioeconomic status. Because of the enormous cuts in funding at BMC, ultimately minorities and lower income are being discrimated against.

    Posted by Mary Florentino December 17, 08 02:20 PM
  1. I hope that pay cuts or job elimination will be seen in upper management as well. Every time I hear about another company going through a round of layoffs or pay cuts, I can't help but wonder whether the execs are still getting their big cushy quarterly bonuses, and infinite expense accounts, etc... It's time to start cutting some pork from the top level, where most of the people are probably still living pretty comfortably, and could afford to cut back a little bit without ever having to struggle.

    Posted by LV December 17, 08 03:15 PM
  1. so doing the math... the average wage is $80,000 ?

    Posted by BostonHippo December 17, 08 03:27 PM
  1. Too many hospital and medical center in this states. And just more people get
    sick and I don't think doctors and nurses are hero or whatever they claim to be.

    Posted by stephanie December 17, 08 05:04 PM
  1. What is Elaine Ullian's salary? Is that being cut?

    Posted by Universal-Healthcare December 17, 08 05:17 PM
  1. There are some pretty wonderful staff who work at that hospital. The advanced practiontioners who work to protect the health and welfare of poor elderly do more than their fair share to fill a void. The idea that the poor must bear the brunt of the pain is shameful. God willing, we do not start to find frail elderly in abusive situations. We can do better. We have to do better than this. January canot come soon enough.

    Posted by praying for better December 17, 08 05:52 PM
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Elizabeth Cooney covers health for the Worcester Telegram & Gazette. She previously reported on business and was an editor at the paper. Earlier in her career, she edited medical books and journals at Little, Brown, and worked for Boston magazine.

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