MercyOne has announced plans to adjust staffing levels and other direct expenses to address decreased revenues caused by the COVID-19 pandemic.
MercyOne President and Chief Executive Officer Bob Ritz posted a statement on the health system’s web page stating they “are making painful but necessary decisions to ensure we sustain our organization into the future”.
He says as they ramped up to support patients afflicted with COVID-19 and paused outpatient and elective services during stay-at-home orders, their revenues fell and operational costs increased.
Ritz says the federal CARES Act helped cover operating deficits for a few months, but only covered approximately 50% of their losses.”
He says some of the affected workers will be those who were furloughed over the past few months.
There will also be position eliminations and extended furloughs or reduced schedules.
All whose positions are eliminated will be eligible for a paid notice period, severance pay and health and other benefits through their severance period.