Point32Health, the parent company of Harvard Pilgrim Health Care and Tufts Health Plan, has eliminated 110 positions to “reduce administrative costs as medical and pharmaceutical trends continue to climb to unprecedented levels.”
The cuts affect employees at all levels of the organization, including mid- to senior-level positions, according to a March 31 Point32Health news release shared with Becker’s.
The company said that like many healthcare organizations, it is facing financial pressures from increasing costs that are “higher than the industry has experienced in decades.”
“Administrative cost reductions is one action within our control,” said Eileen Auen, Point32Health executive chair. “Administrative cost cuts alone, however, will not address cost trend drivers. The healthcare sector must work together to address the exorbitant increases in medical and pharmaceutical trends so that purchasers of coverage do not continue to pay more or even worse, lose health coverage.”
Ms. Auen said Point32Health did not take the decision to reduce its workforce lightly and “colleagues impacted by this reduction have contributed greatly to our organization and we will support them throughout this transition.”
