Due to financial challenges attributed to the COVID-19 pandemic, hospitals across the nation have implemented furloughs and layoffs, while others have been forced to close.
U.S. hospitals are expected to lose $323.1 billion this year due to the pandemic, according to a recent report from the American Hospital Association. The total includes $120.5 billion in financial losses that hospitals are projected to see from July through December, as well as $202.6 billion in losses that were projected between March and June. The losses were largely due to a lower patient volume after canceling elective procedures.
Below are 11 hospitals that announced layoffs, furloughs or closures to address the financial fallout from COVID-19 since July 23:
1. Southwest Georgia Regional Medical Center, a 25-bed critical access hospital in Cuthbert, Ga., will close in October due to financial strain worsened by the coronavirus pandemic. The CEO of the hospital said the coronavirus pandemic "simply pushed our hospital past the point of no return."
2. Bluefield (W.Va.) Regional Medical Center ended inpatient and ancillary services July 30. Hospital officials said the decision to close the hospital was based on several factors, including reimbursement declines, a dip in patient volume and COVID-19-related losses.
3. Indianapolis-based Community Health Network has cut 80 jobs to help reduce financial strain caused by lower patient volume amid the coronavirus pandemic. The health system said in addition to the revenue drop in the first six months of 2020, it incurred more than $35 million in COVID-19-releated expenses. The system ended the first half of 2020 with an operating loss of $39.7 million.
4. Citing financial challenges from the COVID-19 pandemic, Springfield, Ill.-based Hospital Sisters Health System plans to reduce its workforce by 10 percent. As of fiscal year 2019, the system had more than 15,000 employees. The 15-hospital system said that the reductions primarily affect employees in nonclinical roles and include some of those who were furloughed in late April due to a dip in patient volume and revenue.
5. Martha's Vineyard Hospital in Oak Bluffs, Mass., has cut 11 administrative positions. The system said the "difficult decision" was made because it was facing financial hardships due to the COVID-19 pandemic. The job cuts do not include workers who provide direct patient care.
6. Claxton-Hepburn Medical Center in Ogdensburg, N.Y., has laid off its CFO as part of a restructuring and cost-cutting plan. Kelly Tiernan, who served as the hospital's CFO since 2011, has been laid off and replaced by an interim CFO. The goal is to "find efficiencies," and the interim CFO will explore combining the hospital's accounting department with one of its affiliates. The 115-bed hospital has laid off or furloughed more than 100 employees this year.
7. Yuma (Ariz.) Regional Medical Center said Aug. 4 it will cut 34 positions. The layoffs primarily affect those in support roles and come as the hospital sees lower inpatient volume amid the COVID-19 pandemic.
8. Fayetteville, N.C.-based Cape Fear Valley Health furloughed in late March 783 employees to help offset a drop in patient volume and revenue losses attributed to the COVID-19 pandemic. Of those furloughed employees, 62 employees will not be returning, according to the health system.
9. Facing an expected $227 million budget shortfall, Children's Hospital of Philadelphia said it plans to implement furloughs and require staff to use paid time off. A hospital spokesperson said in late July the furloughs are necessary because it is "planning for continued uncertainty."
10. Mohawk Valley Health System President and CEO Darlene Stromstad warned in a memo July 27 that employees will face layoffs and more furloughs as the system grapples with pandemic losses. The number of employees affected was not disclosed as of Aug. 6.
11. St. Lawrence Health System, a three-hospital network based in Potsdam, N.Y., will lay off 46 more employees due to financial losses attributed to the COVID-19 pandemic. The organization previously cut 25 jobs. The health system furloughed 427 employees this spring to help shore up finances. Furloughed positions that were not eliminated will be recalled in August.
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