Bronson Healthcare System announced it will furlough hundreds of employees due to financial strain caused by COVID-19, 3WWMT reported.
The Kalamazoo health care company's furloughed employees would be laid off for 16 weeks. The company's chief executive officer, Bill Manns, also announced he would be taking a 25% pay cut, according 3WWMT.
“We are working to adapt to continuing COVID-19 care while still safely serving all of our patients,” Manns told 3WWMT.
Manns said that other hospital executives would also take pay cuts. By stopping elective surgeries in the wake of the pandemic, there has been a significant drop in revenue for the company.
The company's revenue was down 50% for last month, and the system was forced to suspend 401(k) match programs for the remainder of the year, according to 3WWMT.
“We are continuing their health benefits up until this point. We have been matching their PTO [paid time off], which is huge. We’ve been providing free child care. This really is a furlough, and we are looking forward to bringing those employees back,” Manns told 3WWMT.
Manns stressed that the hospital would still be providing essential care to patients, despite having to furlough so many employees.
“So from a patient-care perspective, Bronson is really well-prepared to resume services as soon as the governor lifts her executive order," Manns said. "I’m really proud of Bronson employees. What we’ve done in the interim, we’ve increased our video visits exponentially, we’ve continued to provide services in our emergency department, and we will continue to provide access to the community."
Manns believes it will take at least eight pay periods for the hospital to recover. He told 3WWMT that they were also expecting money to come in from the CARES (Coronavirus Aid, Relief and Economic Security) Act.
The hospital's main competitor, Ascension Borgess, has committed to no layoffs and said in a statement that the health and safety of its patients, as well as providers and associates, is its top priority.
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