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Cambridge Health Alliance announces layoffs, eliminates open positions

The reductions are a sign of the ongoing financial stress facing some of the state’s health systems.

Cambridge Health Alliance is laying off 69 people, reducing the hours of another 15 employees, and eliminating 170 open positions due to post-pandemic financial pressures.

The reductions are largely in administrative areas, and the health system is continuing to hire, particularly in primary care and behavioral health. Additionally, the health system is aiming to rehire more than half of the employees that were let go into new positions.

The reductions represent a fraction of the organization’s approximately 4,800-person workforce, however, they are a sign of the ongoing financial stress facing some of the state’s health systems as they grapple with ongoing workforce shortages and inflation. In the first 10 months of the fiscal year ending in April, the organization reported a $32 million operating loss. In the same period last year, the organization had lost $25 million — despite receiving $15 million in one-time COVID relief funds.

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A spokesman said the organization had already looked to cut costs in other ways, including reducing non-salary expenses, and cutting marketing and sponsorship budgets for next year.

“This was an extremely difficult decision and one we did not take lightly,” said chief executive Dr. Assaad Sayah in a statement. “We explored every avenue possible to avoid making these changes but were unable to reduce our budget deficit without impacting our workforce.”


Jessica Bartlett can be reached at jessica.bartlett@globe.com. Follow her @ByJessBartlett.