SPRINGFIELD, Mass. (WWLP) - The CEO of Baystate Health is addressing the ongoing healthcare crisis and its impact on the area's largest healthcare system. In a statement to 22News Baystate Health President and CEO Peter Banko said, "We are in the midst of one of the most challenging environments that our organization and the health care industry have ever faced." BusinessWest honors 2024 ‘Healthcare Heroes’ Banko went on to say that Baystate Health has experienced more than $300 million in operating costs over the past few years and that expense growth continues to outpace their revenue growth. He acknowledges room for improvement, noting that Baystate's patient experience is below national and regional averages. In response to these challenges, the hospital's CEO says the hospital's board of trustees has launched a 24-month plan to improve core operations by more than $225 million. The full statement sent to 22News: "We are in the midst of one of the most challenging environments that our organization and the health care industry have ever faced.  From 2020 to 2023, we encountered a prolonged clinical, operational, and monetary shock to our system and worked hard to adjust to the ongoing crisis.  Baystate has made significant strides to create a path to profitability, including the termination of our defined benefit pension plan after providing for the full payment of benefits to all participants, sale of our laboratory to LabCorp and the pending sale of Health New England to Point32Health.  We have also had a heavy reliance on one-time funding sources. Baystate Health has experienced more than $300 million in operating losses over the past few years.  Medicare and Medicaid – neither government payor adequately covers the cost of their care – has grown to more than 70% of our overall revenue.  Our ten-year compounded annual revenue growth rate has been 5.3% compared to 13.9% at Beth Israel Lahey, 10.5% at Hartford HealthCare and 6.6% at Mass General Brigham.  Unfortunately, our expense growth continues to outpace our revenue growth.  Consecutive years of significant losses has eroded our balance sheet, particularly days cash on hand, which declined from 180 days in FY20 to 109 today. Baystate has also experienced its share of workforce challenges with team member engagement, recruitment, retention, and high use of contract labor. In the last six months, Baystate Medical Center has received a Leapfrog Hospital Safety Grade of “D” and a one star out of five stars as a Center for Medicare & Medicaid Services (CMS) overall hospital quality rating. Our patient experience (top box and likelihood to recommend) is below national and regional averages. Access and throughput remain opportunities for improvement. With our Board of Trustees, we developed a clear and achievable path forward and have launched a 24-month focused transformation to improve core operations (acute care, ambulatory, and physician enterprise) by more than $225 million. Last week, we announced optimization of organizational and streamlined decision-making structures.  This week, we launched a system-wide strategic planning process that will chart a new era of growth and expansion for the next five years.  We are leaving no stone unturned in pursuit of corporate overhead, external spend, revenue cycle, clinical access and throughput, workforce management and strategic growth improvement levers.  We are firmly committed to ensuring that our physicians, nurses, and clinical teams have the support to deliver the high quality, safe care that Baystate is known for and our patients expect.  Outside of implementing our new operating model, no other restructuring has been finalized. Baystate’s clear path will return our 141-year organization to strong growth and further our leadership position. We can continue to be an independent health system that is locally governed and managed (not a mere spoke in a system based in Boston or Hartford).  We will have the ability to invest $1.2 billion over the next six years in our people, technology, service line growth, our community and more. As a clinician-driven, physician-led system, we are focused on delivering high-quality care and experience to the communities we serve while leading Baystate Health and Western Massachusetts into a new era of growth in community, health care and business." Local News Headlines New protocol announced for unknown substances found at prisons in Massachusetts Counterfeit money seized in organized retail theft at T.J. Maxx and Marshalls Enfield police captures four suspects in stolen vehicle Crews put out car fire after two-motor vehicle crash in Easthampton WWLP-22News, an NBC affiliate, began broadcasting in March 1953 to provide local news, network, syndicated, and local programming to western Massachusetts. Watch the 22News Digital Edition weekdays at 4 p.m. on WWLP.com.