Citing a revenue loss due to the COVID-19 pandemic, Jackson-based West Tennessee Healthcare has furloughed 1,100 individuals of its 7,000-person workforce, according to The Jackson Sun.
The health system said it lost $18 million in March due to the statewide ban on elective procedures that went into effect March 23. To comply with the order, the health system temporarily shut down some hospital departments as well as its outpatient surgery center.
"Lower volumes, closure of nonessential services, and the cancellation of elective procedures across the country and in Tennessee have left hospitals with concerns regarding cash flows and how to continue operations in the foreseeable future. Our health system is no different," West Tennessee Healthcare CEO James Ross said.
Mr. Ross added that the furloughs are necessary to help the health system sustain operations in the long term.
"I want to assure you that we would not be taking such drastic steps if we didn't have to. We have an obligation to continue to improve the health and well-being of the communities we serve while providing exceptional and compassionate care for generations to come. Hopefully, the steps we take today will help us sustain our system for the long-term," Mr. Ross said.
Mr. Ross added that the system will continue to evaluate the financial impact of the pandemic and adjust operations accordingly.