In response to ongoing financial difficulties, one of Massachusetts' largest healthcare systems, Tufts Medicine, has announced plans to lay off nearly 200 workers. The decision comes as the organization faces persistent capacity issues, high contract labor expenses, and rising supply chain costs.

According to a spokesperson for Tufts Medicine, the company will be cutting 174 employees, which accounts for approximately 1.3 percent of its workforce of 13,000 individuals. The majority of those affected are expected to be in administrative and non-direct patient care roles.

In a statement, the spokesperson acknowledged the progress made towards financial recovery but emphasized the challenges faced by many health systems in the current environment. The spokesperson further highlighted the impact of issues such as capacity constraints and increasing expenses on the organization's financial stability.

Tufts Medicine operates several facilities in Massachusetts, including Tufts Medical Center in Boston, MelroseWakefield Hospital in Melrose, and Lowell General Hospital in Lowell. These financial struggles have forced the healthcare system to carry out previous workforce reductions in August and January of last year.

An additional factor contributing to the financial strain faced by Tufts Medicine is the number of patients covered by Medicare and Medicaid, which typically reimburse at lower rates compared to other insurers.

The layoffs serve as a reminder of the ongoing challenges faced by healthcare organizations as they navigate the complexities of the healthcare landscape. Tufts Medicine's decision to reduce its workforce reflects the increasingly difficult financial realities that many healthcare systems are grappling with in Massachusetts and beyond.

As Tufts Medicine takes steps to address its financial challenges, the impact on affected employees and the organization's ability to continue providing high-quality care to its patients will undoubtedly be closely monitored.