Reliant lays off 78 employees

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Reliant Medical Group laid off 78 employees Wednesday as part of an ongoing expense-reduction effort, the Worcester-based health care provider announced.

The employees represent approximately 3 percent of Reliant’s roughly 2,550 employees. All departing employees have been offered severance packages, as well as outplacement services, according to a statement from the company. The reductions will not impact the organization’s ability to service patients, according to Reliant.

'Extensive examination' of books

“This action is the culmination of an extensive examination of our operational expenses and revenue expectations,” said Dr. Leon Josephs, acting CEO, in a statement. “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.”

The layoffs came in response to a projected 2015 budget shortfall that was driven by a number of factors, including reduced utilization of services due to higher insurance deductibles, declining reimbursements, and slower-than-projected growth in patient rolls, the Reliant statement said.

Efforts to control costs through health care reform have been cited by insurers as having placed increased financial pressure on the industry.

Earlier this year, Reliant merged with Southboro Medical Group.

Dr. Josephs said in the statement that the organization expects to narrowly finish in the black this year and enter 2016 in a firm financial position.