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Thundermist Health Center laid off 124 workers and cut salaries and benefits for all remaining staff in an effort to address what the nonprofit’s board labeled a "financial crisis."
The layoffs mean Thundermist, which serves more than 60,000 at its locations in West Warwick, Woonsocket, and South County, is cutting nearly 14 percent of its staff. An email sent to staff and board members explained that the cuts were necessary to make payroll.
The Boston Globe's Dan McGowan reported on the contents of that email, which stated:
“We are very sorry to take the steps we are enacting today to reduce our payroll costs. If we don't impose these measures, we will be unable to make payroll through the next month. With these actions, we will be able to buy the time we need to get plans in motion that will give us a fighting chance to balance our budget.”
A week prior to the mass layoffs, Thundermist terminated the contract of president and CEO Jeanne LaChance, who had led the organization for 10 years. The board of directors released a statement saying Thundermist's financial difficulties are the result of revenue decreases from the federal 340B drug rebate program and its Medicaid accountable entity.
”The board’s decision comes amid a financial crisis at our organization,” the board said in a statement, also reported by MCGowan in The Globe. “There are numerous challenges that have led to the current situation, including reductions in revenue from the federal 340B drug rebate program, which was a loss of $7 million in the last fiscal year. We have also experienced a decrease in revenues generated from our Medicaid accountable entity, totaling $8.5 million."