Emory Healthcare announces furloughs due to financial impact of COVID-19
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Atlanta, GA – Emory Healthcare will be furloughing some employees to offset the financial impact of the COVID-19 pandemic.
“While never more proud of our team’s response, COVID-19 has had a significant negative impact on our normal revenue and operating expenses, which we must address to ensure a sustained financial recovery throughout our extensive health care system to continue our care and academic missions,” Emory Healthcare President and CEO Jonathan Lewin announced via press release. “If current revenue projections were to be sustained through August, Emory Healthcare would experience approximately a $660 million revenue shortfall across our 11 hospitals and our outpatient practices. Emory Healthcare has 2,691 licensed patient beds, more than 2,800 physicians practicing in more than 70 specialties, serving communities throughout metro Atlanta and beyond with 250 locations.”
Emory Healthcare has ordered all departments to reduce labor expenses by at least 10 percent through the end of the fiscal year. This means furloughs and “flexible scheduling.” Executive and senior management positions will receive a “scaled aggregate” pay cut of up to 25 percent.
“We anticipate this combination of flexible scheduling and short-term furloughs to impact up to 1,500 full time equivalent positions throughout the system from June 1 to August 31,” Lewin said. “These reduced work hours and furloughs will be spread across our nearly 25,000 employees throughout our 11 hospitals and 250 outpatient facilities and will depend upon the volume of patients we care for through the summer. These changes will be reassessed continuously throughout that period.”
Furloughed workers will still get to keep their healthcare benefits.
“We take any action that affects our employees extremely seriously, however, the magnitude of the revenue loss due to cancellation and postponement of the majority of our surgery, procedural and diagnostic cases far exceeds the $142 million in federal grant receipts,” Lewin said. “The HHS (U.S. Department of Health & Human Services) grants are much appreciated, but like any business, we must right-size our expense base to address the loss of revenue by matching our expense trends to our revenue trends – both in the short and long term. We are entering a new phase in which we are making difficult decisions. We will continue to communicate openly with our Emory Healthcare team to ensure transparency as we move toward a new future of continuing to improve lives and provide hope.”
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