Combined, UAHS has seen a 50 to 80 percent decline in
patient activity in recent weeks in comparison to typical volumes. OGH and BRMC
have taken services off line and cancelled elective surgery while at the same
time preparing for COVID-19, including building additional capacity and
purchasing additional personal protective equipment. In addition, the hospitals
have delayed capital expenditures such as construction of the geropsychiatric
unit at OGH. Fundraising events sponsored by the hospital foundations to
support the hospitals have been cancelled or postponed.
“Unfortunately, fighting this virus comes at a very high
price. The losses have been sobering.
Combined, OGH and BRMC lost $2.7 million in March, with projected losses
in April estimated at $6.8 million. Currently, UAHS is projecting a $25 million
loss for 2020 related to COVID-19,” said Jeff Zewe, RN, president and CEO,
UAHS, BRMC, OGH.
“UAHS will continue to aggressively pursue grant and other
funding sources to subsidize losses resulting from the COVID-19 pandemic. Given
the overall financial needs of hospitals across the nation and the massive
losses experienced by business and industry, it is unlikely we will get the
relief at the level we need,” he said.
“As a result, we have made the difficult decision to
initiate a voluntary furlough program at UAHS facilities and organizations,
beginning Sunday, April 26. Currently, we are looking to identify employees in
specific departments who wish to volunteer for furlough. Department managers
are reaching out to specific staff today and tomorrow to identify volunteers,”
Zewe said “None of these reductions will impact our ability to provide patient
care,” Zewe said. “This decision impacts management and staff, clinical and
non-clinical positions. In addition, senior executives, directors and managers
are all taking pay reductions.”
“We will continually evaluate our situation with an eye of
bringing people back as soon as possible. Gov. Cuomo’s recent announcement that
New York hospitals in low COVID-19 impact areas can re-open elective outpatient
treatments is good news. However, the decision from Pennsylvania’s Gov. Wolf
related to elective outpatient treatments has not been made yet. We do expect
to hear news soon related to elective outpatient treatments in Pennsylvania.
Hopefully, when we re-open elective surgeries at our facilities and are able to
open other services, it will enable us to bring some employees back from
furlough,” Zewe said.
“We have done everything asked of us by the government and
everything within our power to protect our patients and staff while doing what
is necessary to serve our patients during this pandemic. As they should, people
are staying home, helping to slow the spread of the virus, but at the same
time, normal hospital business has suffered greatly. That said, we also have to
face reality like every other hospital. It appears that the decline in patient
volumes will continue for some time. With fewer patients to serve and fewer
services, we simply do not have work available to continue to employ all of our
staff in the short term and have no other choice than to furlough employees. We
have recently seen furlough announcements by other nearby hospital systems and
fully expect to see more in the days ahead,” he said.
A furlough is a temporary unpaid leave. Furloughed employees
are not being terminated from their employment and remain part of the OGH/BRMC
family. “We expect to bring everyone back after the current emergency passes,
services re-open and operations return to normal,” Zewe said.
For furloughed employees, health insurance, dental and life
insurance coverage and participation in retirement plans will continue for a
period of 90 days from the effective date of the furlough.
Employees may file for unemployment benefits during the
furlough. New York and Pennsylvania have waived the usual one-week waiting
period for unemployment insurance benefits, so employees may submit their claim
right away.
“We are imploring state and federal governments to help us.
We desperately need funding and relief to offset these unprecedented losses,”
Zewe said. “We have staff on the front line protecting the public. Our
hospitals need to be protected.”
