LOADING

Type to search

Emory Healthcare announces furloughs due to financial impact of COVID-19

Business Metro ATL

Emory Healthcare announces furloughs due to financial impact of COVID-19

Image provided to Decaturish
Share

 

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.”

Decaturish.com is working to keep your community informed about coronavirus, also known as COVID-19. All of our coverage on this topic can be found at Decaturishscrubs.com. If you appreciate our work on this story, please become a paying supporter. For as little as $3 a month, you can help us keep you in the loop about what your community is doing to stop the spread of COVID-19. To become a supporter, click here

Want Decaturish delivered to your inbox every day? Sign up for our free newsletter by clicking here

 

Decaturish needs your support!

Help us provide you with free, quality local news. Become a Decaturish.com supporter today

To chip in $3 a month, click here.

To chip in $6 a month, click here.

To chip in $60 a year, click here.
* Decaturish.com is not a 501-c-3 organization. Support of Decaturish goes toward our newsgathering efforts. Decaturish does not have a print edition.
close-link