A large number of healthcare employees are temporarily out of work today.
Memorial Health System announced yesterday the temporary furlough of 460 employees until September 30th, which is reported to include just over 60 employees at Passavant Area Hospital.
Officials with Memorial said in a statement yesterday the furloughs were a result of decreased patient volumes due to the COVID-19 pandemic.
According to the statement, hospital system officials say “The COVID-19 pandemic has led to significant financial challenges for healthcare organizations across the country..” And “Unfortunately, Memorial Health System is not immune from these pressures.”
Changes to compensation and benefit programs have also been made, including “leader compensation reductions of up to 30%” according to the statement.
Officials with Memorial Health System say these positions have not been eliminated and they continue to be employees of the health system, and will be able to return to work on September 30th.
The furloughs impact employees throughout the Memorial Health System’s eight affiliates, which include hospitals in Jacksonville, Springfield, Decatur, Lincoln and Taylorville.
The 460 workers that have now been put on the shelf represent approximately 5% of Memorial Health System’s workforce.
Below is the statement from Memorial Health System released Friday, June 12th in it’s entirety:
“The COVID-19 pandemic has led to significant financial challenges for healthcare organizations across the country as a result of decreased patient volumes and the continuing fight against the virus. Unfortunately, Memorial Health System is not immune from these pressures. We have made the difficult decision to implement temporary furloughs until Sept. 30 for 460 colleagues. This represents approximately 5 percent of our workforce. At the same time, we have also made some changes to our compensation and benefits programs, including leader compensation reductions of up to 30 percent.
Our colleagues are our greatest strength as an organization and decisions of this kind are never made lightly. This is a reflection of the extraordinary circumstances in which we find ourselves and our duty to be responsible stewards of our resources. All of us are incredibly grateful to all of our colleagues at Memorial Health System for their strength, dedication and resolve in the face of immense challenges.”