Citing Challenges, Fallon Lays Off 62

Fallon Community Health Plan yesterday cut 6 percent of its workforce – or 62 jobs – in response to what it called the “new challenges” in a changing health care industry.

“This decision was made following a very careful review of our current and projected costs,” CEO W. Patrick Hughes said in a statement released by Fallon.

“As all responsible companies do, we routinely evaluate all aspects of our business to determine how to be best positioned for future growth, and to meet new challenges in an evolving health care marketplace.”

Christine Cassidy, a spokeswoman for the Worcester-based health insurer, said the positions that were eliminated involved a variety of roles across the organization.

In the fourth quarter of last year, Fallon had more than 150,000 subscribers in Massachusetts, representing about 7 percent of the Bay State market. As of the June 30 of this year, FCHP membership totaled 229,385, a jump of more than 10 percent from June 30, 2012. Its year-over-year net operating income for the second quarter of this year rose slightly, to $2.8 million from $2.7 million.

Hughes said the job cuts “will have no effect on the high level of service for which FCHP has always been known. Nor will it affect our ability to continue to provide access to high-quality, affordable care.”

Hughes said those who lost their jobs are being provided severance pay and outplacement services.