Murray-Calloway County Hospital plans to furlough some employees to help cushion financial impacts from the state-mandated suspension of elective surgeries and procedures.
Hospital officials in a press release Thursday said departments across the hospital will see spending cuts between 15% to 30%, with some staff seeing reduced work hours and others being temporarily laid off. Management positions will see spending cuts of 20%, at minimum.
Many rural hospitals across the Ohio Valley see the majority of their revenue come from lucrative elective surgeries, such as joint replacements. With the suspension of these procedures in an effort to free up beds, staff and equipment for potential coronavirus patients, some of these hospitals are facing significant financial shortfalls.
Hospital CEO Jerry Penner will also take “two pay periods” without pay, coinciding with the announced furloughs. All furloughed employees will still be eligible for medical benefits, along with eligibility for unemployment benefits.
“Hospitals, like MCCH, will require additional financial assistance to overcome shutdowns
mandated by the government,” Penner said in a statement. “These shutdowns were necessary but just like our local businesses, we’ll need assistance coming out of the crisis to secure our financial future.”
Hospital officials said the hospital is expecting a $5.3 million shortfall in revenue through April, with stimulus funding provided through the federal Coronavirus Aid, Relief, and Economic Security Act (CARES) only offsetting $2.3 million of that shortfall.
These furloughs follow others made by Baptist Health earlier this month, affecting hospitals in Paducah and Madisonville, and layoffs by Jennie Stuart Medical Center in Hopkinsville.
This article may be updated.
