Financial fallout from COVID-19: 9 hospitals laying off workers

Lower client volumes, canceled elective procedures and greater expenditures connected to the pandemic have actually created a cash crunch for health centers. Though Congress has actually designated $175 billion in relief aid for healthcare facilities and other healthcare companies, it isnt sufficient to cover the lost income and greater expenses some are experiencing due to the pandemic..

The monetary obstacles triggered by the COVID-19 pandemic have actually required hundreds of health centers across the country to furlough, lay off or lower spend for employees, and others have needed to scale back services or close..

Healthcare facilities are taking a variety of actions to offset monetary damage. Executives, clinicians and other staff are taking pay cuts, capital projects are being postponed, and some employees are losing their jobs. More than 260 health centers and health systems furloughed workers this year and dozens others have implemented layoffs..

U.S. health centers are approximated to lose more than $323 billion this year, according to a report from the American Hospital Association. The overall includes $120.5 billion in financial losses the AHA forecasts hospitals will see from July to December..

Below are 9 health centers and health systems that announced layoffs since Aug. 1..

1. Springfield, Ill.-based Memorial Health System laid off 143 employees, or about 1.5 percent of the five-hospital systems workforce. The health system mentioned monetary pressures connected to the pandemic as the reason for the layoffs..

2. Watertown, N.Y.-based Samaritan Health revealed Sept. 8 that it laid off 51 staff members and will make other cost-cutting moves to balance out financial stress connected to the COVID-19 pandemic.

3. Chicago-based Cook County Health is laying off about 130 employees due to a budget plan shortfall of $187 million for 2021. Rising need for charity care paired with monetary pressure of the pandemic contributed to the spending plan deficiency..

4. Pointing out client volume changes caused by the COVID-19 pandemic, MemorialCares Long Beach (Calif.) Memorial Medical Center laid off 40 personnel members. The layoffs, which took place in August, generally impacted administrative and management positions.

5. Mentioning monetary difficulties due to the COVID-19 pandemic, Barnstable, Mass.-based Cape Cod Healthcare said it will lay off 118 employees and extend 10 percent income decreases for senior executives.

The University of Texas Medical Branch in Galveston is laying off 200 workers as it faces a budget shortage of $174 million. Interim President Ben Raimer, MD, said the budget plan deficiency is due to monetary damage linked to the COVID-19 pandemic.

7. Indianapolis-based Community Health Network saw profits decrease in the first six months of this year and ended the period with an operating loss. The health system executed several cost reduction initiatives to help in reducing financial strain. Since June 30, the health system cut 80 tasks, removed the match element of its 401( k) strategy from Aug. 1 through Dec. 31, revealed strategies to close its inpatient rehabilitation hospital in Kokomo, Ind., and combined profits cycle and other details systems to get rid of $61.6 million in costs..

8. Marthas Vineyard Hospital in Oak Bluffs, Mass., cut 11 administrative positions. The healthcare facility mentioned financial obstacles connected to the COVID-19 pandemic as a reason for the layoffs. The medical facility said it is including client care-related positions..

9. Yuma (Ariz.) Regional Medical Center said Aug. 4 it will cut 34 positions. The health center stated the layoffs mainly impact those in assistance roles and are because of lower inpatient volume.

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Health centers are taking a number of actions to offset financial damage. Interim President Ben Raimer, MD, said the spending plan shortage is due to monetary damage linked to the COVID-19 pandemic. Marthas Vineyard Hospital in Oak Bluffs, Mass., cut 11 administrative positions. The medical facility cited financial obstacles linked to the COVID-19 pandemic as a factor for the layoffs. The medical facility stated the layoffs mainly affect those in support functions and are due to lower inpatient volume.

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