Cuts will not impede continued delivery of high-quality care to patients

Worcester, Mass., September 9, 2015 – As part of a larger expense-reduction effort, Reliant Medical Group today announces it has implemented a layoff impacting 78 employees, or about three percent of the healthcare company’s approximately 2,550 employees.  All departing employees have been offered severance packages, as well as supportive outplacement services.


The reductions will not impact the organization’s ability to continue to provide patients with high-quality, responsive care.


“This action is the culmination of an extensive examination of our operational expenses and revenue expectations,” says Leon Josephs, M.D., Acting CEO of Reliant Medical Group. “With these reductions and other efforts to streamline our workforce, we believe we have ‘right sized’ our organization relative to patient demand for services and revenue.  Patient care remains our top priority, and none of these cuts will inhibit our ability to provide our unique brand of high-quality, efficient healthcare.”


Dr. Josephs explains that the layoff is a proactive response to a projected 2015 budget shortfall, driven by a number of factors, including reduced utilization of services due to higher insurance deductibles, declining reimbursements, and slower-than-projected new patient growth.


“It became clear that in order to remain a financially-healthy organization for the long term – with the ability to invest in service innovation and other aspects of our healthcare delivery system – we needed to be proactive about reducing our cost structure.


“Reliant has been an important part of this community for over 85 years. Our longevity is attributable to running a fiscally-fit organization so that we can remain responsive to the needs of our patients and employees; we take this obligation very seriously,” Josephs added.


Dr. Josephs states that the organization expects to achieve a narrow operational margin in 2015 and enter 2016 in a firm financial position.


“We have enormous respect for our departing employees, and we remain deeply appreciative of the substantial contributions they have made during their time with Reliant,” concludes Dr. Josephs.