Valley Medical Group, a cornerstone of primary care in Western Massachusetts, has announced a significant workforce reduction as independent medical practices across Massachusetts face mounting financial pressures.
According to the Daily Hampshire Gazette, the organization has laid off 41 employees, representing approximately 10% of its 400-person workforce.
The cuts impact nurses, administrative and support roles across its four health centers in Greenfield, Amherst, Northampton and Easthampton.
Financial strains
In an interview with the Greenfield Recorder, VMG President and CEO Paul Carlan called the decision “strictly financial,” citing a decade of accelerating healthcare costs and a post-pandemic economic environment marked by high inflation.
Carlan pointed to chronic underfunding at the state level and inflation as key drivers behind the decision.
He told the Recorder that less funding for Medicaid and increasing commercial insurance premiums have squeezed margins for independent groups that lack the negotiating leverage of large hospital systems.
Labor costs were another key factor, as persistent inflation has driven the cost of maintaining a competitive workforce in a region already facing a healthcare staffing shortage.
According to the Daily Hampshire Gazette, the positions eliminated include nurses, educators, receptionists, referral specialists, administrators and custodial staff.
“The people who see patients … those folks are still taking care of patients, but we do have less support,” Carlan told the Gazette.