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Hospital considers staff cuts

April 11, 2014

LEOMINSTER, Mass. (AP) — A central Massachusetts hospital says it is considering staff cuts as it faces a $7.3 million reduction in Medicare and Medicaid payments and $2.5 million decline in revenues because of reduced patient volume.

HealthAlliance Hospital, with campuses in Leominster and Fitchburg, has hired a consultant to gauge how its staffing matches with similarly sized hospitals.

The hospital is part of Worcester-based UMass Memorial Health Care.

Revenue from the first five months of the current fiscal year is down $2.5 million from last year, and the hospital expects those volume declines to continue for the “foreseeable future.”

Interim President Mike Cofone said Thursday that while the hospital is not ruling out potential layoffs, it is looking at other options, including supply arrangements and purchasing agreements.

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