The economic fallout of government mandates meant to deal with the coronavirus pandemic is causing hospitals across the country to cut hours and furlough workers.
In Cincinnati, Ohio, a March 17 order from the Ohio Department of Health halted all nonessential surgeries in order to preserve personal protective equipment in hospitals. The financial ramifications were severe, and it’s estimated that the surgery cancellations cost area hospitals $1.2 billion per month, according to the Cincinnati Enquirer.
That disruption has forced hospitals to cut back on hours and consider furloughs for hundreds of hospital workers. A spokeswoman for Mercy Health said that 700 employees will go on furlough that will last 30 to 90 days.
States across the country have issued similar orders and proclamations in accordance with guidance from the U.S. surgeon general requesting that hospitals limit elective surgeries amid coronavirus fears.
The sudden decrease in revenue as a result of the coronavirus measures has caused Boston Medical Center to furlough 700 employees, as well.
“We have reassigned a number of staff members and made the difficult decision to furlough approximately 10 percent of our health system workforce,” Boston Medical Center President Kate Walsh told the Boston Globe. “Although furloughed employees will cease to work temporarily, they will remain in active status with the expectation of returning.”
The same situation is unfolding in Kentucky where one of the largest healthcare providers in the state is laying off hundreds of employees due to the sudden reduction in income associated with the coronavirus.
“It’s very unfortunate, it’s just another economic fallout as a result of this pandemic,” Harlan County Judge-Executive Dan Mosley told the Lexington Herald-Leader in response to news that Appalachian Regional Healthcare, the largest healthcare provider in eastern Kentucky, is furloughing 500 workers. “This pandemic is having an impact on every industry, including the healthcare industry.”
The Connecticut Children’s Medical Center is furloughing 400 across its health system as a result of surgeries being delayed, which has caused patient volumes to plummet, resulting in millions of dollars of lost revenue, according to the Hartford Courant.
The number of elective cases at Prisma Health in South Carolina has fallen by over 75% in two weeks. CEO Mark O’Halla issued a letter to employees informing them of furloughs, adding that they will be able to file for unemployment and apply for open positions at the hospital.
Two-hundred healthcare workers in Tennessee are being furloughed as a result of “dramatically reduced” hospital visits, which means a loss of revenue, according to the Tennessean.
“This was a very difficult decision to make. I appreciate the tremendous sacrifices our staff is making in this time of uncertainty,” Williamson Medical Center CEO Donald Webb said of the move. “Given these extraordinary circumstances, we are taking the necessary actions to ensure long term viability of the health system for our staff and the communities we serve.”
Shore Medical Center in New Jersey sent a letter to employees informing them that the “dramatic decrease in revenues” and “significant resources” invested in coronavirus equipment to protect workers treating coronavirus patients has forced them to layoff workers.
“In an effort to reduce the number of involuntary staff reductions Shore Medical Center is first asking for volunteers who may be interested in accepting a layoff,” a spokesperson wrote in a letter obtained by NBC 10 Philadelphia. “Perhaps, prior to COVID-19, you have thought about leaving the organization, for one reason or another, in the next few months? If you are interested in volunteering for layoff, we may be able to meet that need dependent on department operations.”
Similar revenue issues and furloughs have been reported in Oregon, Virginia, and Arkansas.
“Get ready,” Federalist co-founder Sean Davis said on Twitter. “This is going to start happening at hospitals and private medical practices all over the country. In the name of ‘flattening the curve,’ we are economically destroying health care capacity.”
Get ready. This is going to start happening at hospitals and private medical practices all over the country. In the name of “flattening the curve” we are economically destroying health care capacity. https://t.co/IczaDW8xsR
— Sean Davis (@seanmdav) April 1, 2020

