Baystate Health announces buyouts, citing headwinds including President Trump’s policy bill

SPRINGFIELD — Baystate Health is offering buyouts to employees in non-direct-patient-care roles across the health care giant and its subsidiaries, including Health New England.

In a statement Friday, Baystate management specifically cited the challenges presented by President Donald Trump's signature domestic policy and budget bill passed this summer.

With 13,000 employees, Baystate is one of the largest employers in the region. Separately, Health New England — its insurance arm — has about 400 employees.

Baystate said it continues to recruit and hire physicians, advanced practice providers and bedside caregivers.

"Like many health systems nationwide, we've faced significant financial pressures from rising labor costs, inflation, and reimbursement challenges," a statement rom the health system said. "Addressing these realities is essential to continue investing in our people, services and facilities."

Baystate Health lost $146 million in 2024, according to a statewide study of financial performance in health care.

Only Tufts Medicine — which lost $214 million — posted a bigger shortfall among the state's 23 hospital health systems, according to the state's Center for Health Information and Analysis .

Baystate Health had a profit margin of -6% and a -2.5% operating margin. Profit margins are earnings minus the cost of expenses, according to that CHIA report from early October. Operating margins are similar but don't take into account investment income.

Its flagship hospital, Baystate Medical Center, had a profit of $38.9 million, a 2.1% margin with a 1.7% operating margin, the report said.

Back in February 2024, Baystate announced a deal to sell Health New England to Point32Health. But the sale was called off in January 2025 and Baystate has since appointed new leadership at the insurer.

Baystate Health eliminated a total of 275 jobs in three separate layoffs in late 2024 and the early part of 2025.

Baystate suffered $300 million in operational losses between 2020 and 2023, new CEO Peter D. Banko announced over the summer of 2024.

The hospital system lost $177 million in 2022 alone. That year was also a bad year for the stock market, so Baystate Health lost $150 million on its investments, in addition to the operational loss.

Banko's announced a year ago plans close that gap through both cuts and bringing in more revenue. A year ago, he said Baystate Health needs to cut expenses and boost revenue by a combined $225 million in 2024. He hoped the hospital system would regain its own financial health in 2025.