Name: UMMC lays off hundreds amid pandemic. Other hospitals struggling. Now what?
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UMMC lays off hundreds amid pandemic. Other hospitals struggling. Now what?

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Mississippi Clarion LedgerView CommentsThe University of Mississippi Medical Center announced on Wednesday&nbsp;it has laid off more than 250 employees as it faces a budget shortfall in the middle of the coronavirus&nbsp;pandemic.The layoffs are just one step of several the center has taken in recent days in an attempt to shore up a "devastating budget shortfall" where UMMC has seen over $1 million in revenue losses each day since mid-March. And hospitals statewide, many facing financial problems before the pandemic, are struggling to stay afloat.Hospital struggling:“Today, in an effort to offset the financial losses attributed to COVID-19, the Medical Center took the unfortunate action of reducing our workforce by&nbsp;more than&nbsp;250&nbsp;positions," said Dr. LouAnn Woodward, UMMC vice chancellor for health affairs, in a statement.&nbsp;The job cuts are permanent and include both staff and faculty, said UMMC Spokesman Marc Rolph. They represent a relatively small number of staff at UMMC, about 2.5% of the center's 10,000-person workforce across the state.But the cuts come amid the coronavirus outbreak in Mississippi and as the center has spent considerable resources to combat the spread of the virus, including the creation of an in-house laboratory to test residents and a field hospital in downtown Jackson and other testing sites throughout the state.&nbsp;The center is now working with the state Department of Health to test all residents and staff at long-term care facilities in the state. To date, more than half of all COVID-19 deaths are As of Thursday, the state reported close to 700 deaths and over 14,000 cases of the virus since the first case was reported on March 11.&nbsp;Executive leaders at the center, including Woodward, have already taken a 15% salary cut since the beginning of May. Any employee making over $100,000 will see their pay cut by 10% beginning July 1. The center is also looking at budget cuts and&nbsp;has put restrictions on hiring and travel.Behind the tests:Rolph said it's&nbsp;hard to put a figure on how much the layoffs will save the center&nbsp;since many of the layoffs&nbsp;have phased-in periods, especially for faculty. He said it's&nbsp;safe to say the majority of budget savings will come from the workforce reduction.&nbsp;The center, which is among the top five hospitals in the &nbsp;and the state's only research hospital,&nbsp;hasn't been immune to the devastating economic impact the virus has had on several industries in Mississippi.&nbsp;Woodward in a May 21 internal email to staff and students said the center is facing $100 million in revenue losses through September&nbsp;and $150 million by the end of December. The projected losses are on top of anticipated federal funding and an estimated 85% return to patient flow at the hospital.There have&nbsp;been "significant drops" in patient volume, surgeries and other procedures due to the pandemic, Woodward said.Health experts and government officials — fearful of an overwhelmed health care system —&nbsp;requested patients cancel all non-essential medical procedures in order to free up space for coronavirus patients. Many of those patients do not have insurance due to recent job losses, adding to the center's revenue losses.Woodward before the state Senate Public Health and Welfare Committee that the hospital's revenue loss estimate is a moving target and could change depending on how much it is reimbursed by the federal government. She warned at the time the financial shortages could lead to a reduction in staff.So far, the&nbsp;center has been reimbursed just $25&nbsp;million of the about&nbsp;$700&nbsp;million in federal funds allocated to Mississippi health care facilities underThe reality at UMMC is one&nbsp;&nbsp;Mississippi Hospital Association President Tim Moore said hospitals in the state could&nbsp;need an additional $320 million to&nbsp;$360 million&nbsp;for the remainder of this year due to revenue losses. He&nbsp;said hospital revenue between February and April was down $365 million, leading to $280 million in net operating expense losses.Mississippi’s Medicaid Director Drew Snyder said&nbsp;many hospital executives have told him they have “low cash on hand” because patients are not seeking care outside of coronavirus treatment. Snyder said his agency had&nbsp;given out $170 million in emergency supplemental payments to keep hospitals afloat until elective procedure business returns.More:Ryan Kelly, executive director of the Mississippi Rural Health Association, said revenue for most of Mississippi’s rural hospitals and clinics has plummeted 25%.Woodward in the memo praised staff in uncertain times.&nbsp;"I would dare say UMMC has not faced a challenge of this magnitude before in all of its 65 years of existence. It will take guts, grit and fortitude to pull through to the other side. Today’s action is an example of how very tough decisions with difficult consequences will be required. However, I am confident we can, and we will, weather this storm and emerge stronger than ever.”View Comments

Mississippi Clarion LedgerView CommentsThe University of Mississippi Medical Center announced on Wednesday&nbsp;it has laid off more than 250 employees as it faces a budget shortfall in the middle of the coronavirus&nbsp;pandemic.The layoffs are just one step of several the center has taken in recent days in an attempt to shore up a "devastating budget shortfall" where UMMC has seen over $1 million in revenue losses each day since mid-March. And hospitals statewide, many facing financial problems before the pandemic, are struggling to stay afloat.Hospital struggling:“Today, in an effort to...

UMMC lays off hundreds amid pandemic. Other hospitals struggling. Now what?

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