Becker's Hospital Review

9 CFO / FINANCE University of Rochester Medical Center furloughs 3,400 workers By Ayla Ellison U niversity of Rochester (N.Y.) Medical Center furloughed 3,474 employees in early May, more than 19 percent of its 17,885-person workforce. e medical center said May 8 that temporary workforce reductions were necessary aer ex- hausting other cost-saving alternatives. ough some clinical employees were being furloughed, it said all open facilities were fully staffed in May. In mid-April, the medical center faced a $500 million budget gap for the current fis- cal year it attributed to declining revenue and higher costs linked to preparation for a surge of COVID-19 patients. Aer taking several steps to reduce the gap, including eliminating pay increases and delaying capi- tal spending, the medical center projected a deficit of $315 million. It furloughed 1,517 workers at 886-bed Strong Memorial Hospital in Rochester, or about 13 percent of the hospital's staff. e medical center also furloughed staff at its school of medicine and dentistry, school of nursing, University of Rochester Medical Faculty Group, Eastman Institute for Oral Health and in its health sciences division, which provides administrative support for the medical cen- ter's clinical and academic enterprise. Of those furloughed, 19 percent were "full furloughs" and 81 percent were "partial fur- loughs," the medical center said. Full furlough means an employee does not work at all un- til the furlough ends, while partial furlough means an employee works fewer hours. "URMC is intensely proud of the cour- age, dedication, and ingenuity employees across our institution have shown in helping our community and region respond to the COVID-19 pandemic," said Mark Taubman, MD, CEO of the medical center. "at makes it all the more painful to tell employees that despite austerity measures already in place, furloughs will be needed to restore financial stability during a period of unprecedented financial challenges." n 214-bed Kentucky hospital closes By Ayla Ellison C incinnati-based Bon Secours Mercy Health closed Ashland, Ky.-based Our Lady of Bellefonte Hospital April 30. Bon Secours announced plans in January to close the 214-bed hospital. The hospital was originally scheduled to shut down in Septem- ber, but the timeline was moved up to April after employees began accepting new jobs or ten- dering resignations. "Many members of our team have already ac- cepted new positions conditionally, meaning that start dates with their new employers can't begin until their employment at OLBH ends," Jason Asic, interim president of OLBH, said in February. "These employers have hired our staff in good faith, and we want to provide the time frame for when these transitions can take place." Bon Secours began scaling back services at OLBH in February, and all patient care, includ- ing emergency services, ended by April 30. The health system said medical records will be avail- able to patients after the closure date. More than 1,200 employees were affected by the closure, according to a Worker Adjustment and Retraining Notification Act notice filed with the state. Dozens of job fairs held in early 2020 helped some hospital employees secure new jobs. n 'We are planning for a new normal': Providence Oregon to furlough staff, cut exec pay By Alia Paavola P rovidence Oregon will implement staff furloughs and leader- ship pay cuts to help offset financial losses attributed to the COVID-19 pandemic, the Portland-based health system an- nounced May 12. The health system said its core leaders will each be required to take a one-week unpaid furlough between May 17 and July 31. In addi- tion, caregivers will flex their hours during the same time period. The hours will be flexed based on patient volume, according to a news release. Furloughed employees will retain healthcare benefits and can ap- ply for unemployment. In addition, affected caregivers can use their paid time off. Providence also plans to implement pay cuts — ranging from 5 per- cent to 50 percent — for senior leaders. "We are planning for a new normal to ensure financial stability in the months ahead. We are doing all we can to ensure the highest safety precautions are in place for all of our services as we reach out to patients to ensure they do not delay needed care," said Lisa Vance, CEO of Providence Oregon. The health system said that complying with Oregon Gov. Kate Brown's order to suspend non-critical surgeries to prepare for a po- tential surge in COVID-19 patients caused low patient volumes and a revenue drop. In addition, preparation also added expenses for Providence. For example, Providence paid more for protective gear and saw a sharp increase in pharmaceutical demand and costs. n

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