Health Care
2:32 pm
Wed May 22, 2013

More Layoffs As Lifespan Tries to Trim $150M

The state’s largest hospital network is making another attempt to trim nearly $150 million in expenses over the next two and a half years. Lifespan has announced another round of layoffs.

In a statement to Rhode Island Public Radio, Lifespan says it has cut 122 jobs. A majority of those are vacant positions they’re not filling. The rest involve laying off dozens of management and staff, and a number of physicians and Ph.D.s who are leaving Lifespan through retirement, job elimination, or the consolidation of the positions. That’s down from a total workforce of 11,500. What’s more, Lifespan says it will offer a voluntary early retirement program to employees who qualify. And it hasn’t ruled out additional job cuts.

Lifespan CEO Dr. Timothy Babineau
Lifespan CEO Dr. Timothy Babineau
Credit Lifespan

The organization says its bottom line has been affected by a drop in Medicare and Medicaid funding. It’s also been hit by the federal budget cuts known as sequestration. Plus, Lifespan hospitals provide a good deal of charity care to the uninsured, which puts an additional strain on finances.

Lifespan began this restructuring effort last fall, eliminating several senior management positions.

Editor's note: We've updated the number of job cuts since this story was recorded to reflect new information from a Lifespan spokesperson.