No staff cuts or furloughs, but Memorial Healthcare System cuts costs during pandemic
As nurses, doctors and other hospital employees contend with COVID-19, Memorial Healthcare System is taking several steps to avoid furloughs and reduction of staff to help ease financial struggles brought on by the pandemic.
Among the measures: Freezing hiring for all positions; eliminating all leadership merit increases for 2020; suspending Memorial match for retirement 403B accounts from June to December 2020 and canceling all travel to conferences and symposiums through April 2021.
“With continued attention on sound fiscal management, these steps will help Memorial avoid furloughs and layoffs, difficult measures already being implemented in other healthcare systems and industries,” said Kerting Baldwin, a spokeswoman for Memorial.
Other changes include canceling bonuses in 2020 for all personnel; doing away with salary increases unless contractually obligated; reducing Purchase Outside Labor (POL) and using available clinical staff to fill alternate positions such as sitters, nursing and clinical support and reallocating scholarship funds to expand resources in laboratory and nursing.
Baldwin said the changes are being done so ”this organization, a safety-net provider, remains viable, and focused on continuing to serve patients and families across our community while preserving and protecting our workforce. “
Hospitals are facing financial losses due to eliminating profitable elective surgeries to free up beds to treat patients with COVID-19, the disease caused by the coronavirus. They are also increasing the hours of doctors and nurses and other medical staffers who are treating COVID-19 patients, resulting in higher labor costs.
Last week, Jackson Health System, the large public healthcare system in Miami-Dade County, announced it would hold off on planned furloughs and pay cuts after originally saying the measures were needed due to significant financial losses stemming from the coronavirus pandemic. Jackson, a taxpayer-owned hospital network, avoided the cuts after Miami-Dade County commissioners said Jackson could draw on a $150 million line of credit for operating capital.
Baldwin said Memorial is not immune to financial impacts of the virus.
“Memorial is also experiencing significant consequences with a substantial decrease in patient volumes; a stark contrast to the increase we have in expenditures, essential to operate in this era of COVID-19,” Baldwin said. “These are unprecedented and challenging times, and these measures are key to preserving our workforce and the vital care our community depends on daily.”
