Jefferson Health is making cuts after reporting a bottom line of $298.7 million in the ended June 30. The system published a loss after receiving $320 million in grants offered under the Coronavirus Aid, Relief and Economic Security Act to assist cover lost profits and costs connected to the pandemic, according to The Philadelphia Inquirer.
” As one of the health systems in the United States with the biggest amount of Covid patients during the surge, and among the most affordable worker infectivity rates, we took a no expense is too much to safeguard our staff members approach with PPE and other measures that drove up short-term expenditures,” Stephen Klasko, MD, president of Thomas Jefferson University and CEO of Jefferson Health, told the Philadelphia Business Journal..
Philadelphia-based Jefferson Health is taking actions to minimize costs to help balance out losses tied to the COVID-19 pandemic..
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In addition to cutting unfilled positions and minimizing executive pay, the health system is taking a couple of other actions to accomplish savings, including a pay freeze and a 1 year suspension of employer contributions to staff member retirements plans starting Jan. 1..
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The 14-hospital system plans to get rid of between 500 and 600 positions through attrition and will cut pay for its “most senior executives,” according to the Philadelphia Business Journal..
Dr. Klasko stated patient volumes are starting to rebound, and the health system leads spending plan for 2021..
” We made a conscious decision, as the regions second-largest company, to do no furloughs and just really couple of pre-planned layoffs during the pandemic surge,” Dr. Klasko informed the Philadelphia Business Journal. “Due to our financial stewardship and growth over the previous 5 years, our balance sheet was very steady and stays really stable in spite of the pandemic tsunami.”.