SPRINGFIELD – Facing federal cutbacks on top of already tight margins, Baystate Health has cut 117 jobs.
The cutbacks amount to less than 1% of its workforce. With nearly 13,000 employees, Baystate is the region’s largest employer.
Baystate said in a statement Monday that it outsourced some biomedical engineering positions and closed its central warehouse in Holyoke on Jan. 31.
In the case of some eliminated engineering positions, the employees will be given a job at an outside company. The clinical engineering team will transition to become TRIMEDX employees starting in May 2026. Baystate did not say exactly how many people were offered those other positions.
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Baystate said it has been transitioning to a just-in-time supply chain, meaning items are ordered when needed instead of continually maintaining a large stock. That has allowed it to close its central warehouse in Holyoke as of Jan. 31, according to a statement a Baystate spokesperson sent Monday in response to questions from The Republican.
Baystate Health President and CEO Peter Banko met with Rep. Richard E. Neal at the TD Bank building in Springfield on Monday morning to discuss the state of health care in western Massachusetts. Dec. 15, 2025. (Douglas Hook / The Republican)Douglas Hook
The cutbacks and changes included in President Donald Trump’s signature domestic policy bill are expected to cost Baystate $147 million in added expenses and lost revenue. Baystate will also need to care for more uninsured patients as more people drop coverage.
Baystate was already working to close a $225 million hole in the health care giant’s finances left in the wake of the coronavirus pandemic.
“Last year, Baystate Health met budget expectations for the first time in six years and we are now better able to manage current and future capital investments that address clinical needs and growing our health system,” the statement reads.
Baystate said it is continuing to recruit physicians, advanced practice providers, nurses and clinicians.