Updated: April 20, 2020 02:04 PM
Created: April 20, 2020 01:21 PM
(ABC 6 News) – Monday, Olmsted Medical Center (OMC) announced it will be implementing temporary staff reduction, pay cuts and furloughs amid the COVID-19 pandemic.
In a press release, OMC said these temporary measures are to address the financial impact caused by the restrictions on elective surgeries and procedures and the decline in clinic visits.
Chief Executive Officer Tim Weir said OMC has experienced significant reductions in revenues due to the pandemic and projects a loss of close to $25 million for the months of April through June. Weir said that OMC supports the Governor’s executive orders, but as a result of the orders, OMC’s hospital and clinic volumes are seeing declines of 60-70 percent.
OMC said other measures they have taken include temporarily closing and consolidation some patient care locations and using some locations for other purposes, such as delivering video visits. In addition, OMC said they are currently hiring only critical positions and have stopped capital purchases and projects during this time.
“Due to many years of strong financial management and the excellent work of our employees in our organization over the years, we have been able to support all our employees and clinicians through the month of April. Despite our stable financial position, we understand that appropriate fiduciary measures need to be undertaken to ensure our ability to continue to serve our patients when this pandemic abates,” said Weir.
The President and CEO of OMC will reduce their salaries by 20% starting April 28. All senior administrators will have a 15% salary reduction and starting May 12 directors, managers, physician administrative leaders, physicians and podiatrists will have a 7.5% salary reduction.
Also on May 12 OMC will implement a combinations of temporary staff reductions through furloughs in some areas and begin reduction in compensation/pay in other areas.
OMC said hourly employees may see work reductions, but no wage decreases will be implemented.
“Since 1949, patients have counted on OMC to be their community healthcare provider, and we fully intend to resume our patient care services to meet our communities’ needs as soon as possible,” stated Weir. “We want our patients to keep their health top of mind and concentrate on taking care of themselves. Our healthcare professionals remain committed to providing the care our community needs, today and in the future.”
OMC employs approximately 1,300 employees.
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