The hospital said the layoffs were necessary after the hospital was shut out of a third portion of federal funding, according to the report.
The medical center said it expected to receive $5 million to $6 million in federal aid from the third round of funding from the Coronavirus Aid, Relief and Economic Security Act, but it didn’t qualify because it didn’t meet the threshold of serving at least 100 COVID-19 patients.
“The layoffs are directly related to the fact that we did not receive the third tranche of federal funding,” Thomas Quatroche, the hospital’s president and CEO, told The Buffalo News.
The layoffs, which are expected to affect workers across all departments, are expected to save the health system about $5 million.
The hospital said it will first offer voluntary two- to six-week furloughs and then implement involuntary ones if its savings goals are not met.
The hospital reported a $20 million loss in April due to the suspension of elective procedures amid the pandemic, according to local news station WKBW.
More articles on healthcare finance:
Mass General Brigham posts $1.6B loss in Q2
CMS offers hospitals $1.9B in incentive payments
Hospitals blast CMS decision to double down on price transparency
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.