Jacksonville, Fla.-based Nemours Children's Health System will implement a $100 million cost-cutting plan and reduce its workforce by 3 percent to 4 percent, according to the Orlando Sentinel.
The health system said a decrease in patient volumes in the fourth quarter of 2020 contributed to its decision.
"The hard truths of this pandemic remain that pediatric volumes have not returned to pre-pandemic levels and we don't know when the volumes will return," Nemours Children's told the Orlando Sentinel. "But we know when they do, they will look different from today."
Some of the cost-cutting measures will include reducing spend on travel, consulting and purchased services; standardizing processes to become more efficient; deferring capital projects; and eliminating merit raises for 2021.
Nemours said it didn't furlough employees last spring and implemented a redeployment program to ensure its workers had hours. However, Nemours said it "must work to right-size operations to these new expected patient volumes."