Bon Secours Mercy Health to furlough 700, estimates $100M monthly operating loss

Citing a revenue hit from the COVID-19 pandemic, Cincinnati-based Bon Secours Mercy Health will furlough 700 employees and freeze wages of all nonclinical personnel, according to The Cincinnati Business Journal

The furloughs will affect workers in the system's shared services business office, which includes entry-level workers and those who are senior vice presidents. No caregiver, pharmacy or supply chain jobs will be affected. 

The furloughs are expected to begin next week and last 30 to 90 days, depending on how long the pandemic lasts, according to Bon Secours Mercy Health CEO John Starcher.

The cost-cutting measures are a result of an anticipated decline in revenue due to government-imposed bans on elective procedures. Bon Secours Mercy Health estimates it will see an operating loss of at least $100 million per month while the pandemic lasts.

In addition to the furloughs and wage freeze, the health system is freezing hiring for all noncritical care positions.

"We don’t shy away from making the difficult decisions, and this certainly is one of those, because we always have a mind’s eye on what the long-term ramifications and implications are," Mr. Starcher told the Business Journal. "We’re laser-focused on making sure this ministry is as successful and vibrant for the next 150 years as it’s been for the last 150."

More articles on healthcare finance: 
Hospitalization charges for COVID-19 patients could top $1.4 trillion
Mission Health sends refunds to patients affected by billing change
9 health systems suspending billing for COVID-19 testing, treatment

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