Southcoast Health furloughs 10% of workforce

New Bedford, Mass.-based Southcoast Health has furloughed more than 10 percent of its 7,500-person workforce, according to Southcoast Today

The four-hospital system has instituted two rounds of furloughs — one in April and another in mid-May. Some employees have been placed on full furlough while others are on a half-time furlough, a health system spokesperson told Southcoast Today

Southcoast Health, a nonprofit system, experienced a significant drop in patient volume after it postponed elective procedures and suspended certain outpatient services due to the COVID-19 pandemic. As a result, revenue significantly declined in recent months, Southcoast Health President and CEO Keith Hovan said in April, according to Southcoast Today.

In addition to the furloughs, Southcoast Health has taken several other steps to offset financial damage. The health system canceled merit raises for senior leaders that were slated to go into effect this year and implemented a hiring freeze for positions not essential in COVID-19 response. Mr. Hovan is temporarily foregoing his salary and other executives are taking a reduction in pay. 

Southcoast Health is one of more than 260 hospitals and health systems across the U.S. to furlough employees since late March. Read more about the furloughs here

More articles on healthcare finance:
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Providence posts $1.1B loss in Q1

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