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Job Cuts Worsen in Boston Healthcare Sector

Healthcare professionals in a Boston hospital facing layoffs

News Summary

Boston is experiencing significant job losses in its healthcare sector, led by layoffs at Point32Health, Mass General Brigham, and the Boston Health Care for the Homeless Program. Point32Health announced it would cut 254 jobs, while Mass General Brigham faces hundreds of layoffs due to budget deficits. Similar financial struggles are prompting BHCHP to lay off 25 employees and close a medical respite facility. These workforce reductions reflect broader challenges in maintaining healthcare services amid rising operational costs and Medicaid cuts.

Boston, Massachusetts is facing substantial job losses in its healthcare sector as financial struggles escalate across various organizations. The most notable layoffs come from Point32Health, which is eliminating 254 jobs, or about 6.5% of its workforce. This reduction, announced recently, marks the organization’s second workforce cut this year, following a previous layoff of 110 employees in March.

The layoffs at Point32Health are part of a broader strategy to mitigate rising administrative costs amidst increasing financial losses reported by health insurers within the state. Massachusetts has also been significantly impacted by layoffs from the state’s largest healthcare system, Mass General Brigham. On February 10, 2025, Mass General Brigham announced impending layoffs that may affect hundreds of workers due to a projected budget gap of $250 million.

According to CEO Dr. Anne Klibanski, the cuts at Mass General Brigham will largely target non-clinical and non-patient facing positions. The organization, which operates with a workforce of over 82,000, intends to complete the layoffs by March. To assist affected employees, they are offering competitive severance packages and continuity of benefits.

Mass General Brigham has cited several pressures contributing to the need for layoffs, including inflation impacts, operational inefficiencies, and a capacity crisis within the system. The healthcare provider is also experiencing an increased patient load, largely attributed to the closure of other local hospitals, which has resulted in the absorption of additional patients. The organization emphasizes that financial health must be managed carefully to continue fulfilling its mission of providing quality healthcare.

In addition to the issues at Point32Health and Mass General Brigham, the Boston Health Care for the Homeless Program (BHCHP) is also undergoing significant staff reductions. The organization plans to lay off 25 employees starting October 10 and will close the Stacy Kirkpatrick House, a medical respite facility that serves patients recovering from medical procedures. This decision affects approximately 4% of BHCHP’s workforce, impacting various roles, including administrative, clinical, and support staff.

BHCHP’s financial challenges are largely due to anticipated Medicaid cuts, with approximately 75% of the program’s funding sourced from Medicaid. As a result, the organization is facing a projected revenue loss of $7 million in the coming year. The recent enactment of “One Big Beautiful Bill” by the U.S. Congress has introduced substantial cuts to Medicaid, which could jeopardize health coverage for millions and significantly increase the number of uninsured individuals in Massachusetts. A recent study estimates that about 200,000 MassHealth members might lose coverage as a result of this legislation, causing the overall number of uninsured to rise by over 50% in the state.

Despite these financial difficulties, BHCHP’s leadership is proposing competitive compensation and comprehensive benefits to its employees, illustrating a commitment to supporting staff even in challenging economic times. The layoffs and service closures across these organizations illustrate a trend of significant employment challenges in the Massachusetts healthcare sector, raising concerns about access to care and the sustainability of safety-net services for vulnerable populations.

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STAFF HERE BOSTON WRITER
Author: STAFF HERE BOSTON WRITER

The BOSTON STAFF WRITER represents the experienced team at HEREBoston.com, your go-to source for actionable local news and information in Boston, Suffolk County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Boston Marathon, Head of the Charles Regatta, and Boston Harborfest. Our coverage extends to key organizations like the Greater Boston Chamber of Commerce and Associated Industries of Massachusetts, plus leading businesses in finance, biotech, and insurance that power the local economy such as Fidelity Investments, Biogen, and Liberty Mutual Insurance. As part of the broader HERE network, we provide comprehensive, credible insights into Massachusetts's dynamic landscape.

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