Baystate Health, a healthcare network in western Massachusetts, is cutting 55 jobs and eliminating 120 vacant positions as a result of a $37 million projected budget shortfall.
Baystate Health, which runs Baystate Medical Center in Springfield, Mass., said it would also enact a hiring freeze for non-clinical positions and wait until the economy improves before moving ahead with financing for a major expansion.
The health network has been hit hard by the economic downturn, reductions in Medicaid reimbursements and falling numbers of patients. The projected budget shortfall represents about 2.3 percent of its total budget for the current fiscal year.
The company, which employs about 10,000 people, also operates hospitals in Ware and Greenfield, Mass., and runs several regional health centers.