Munson Healthcare to cut 25 leadership positions

Traverse City, Mich.-based Munson Healthcare is cutting 25 leadership positions to help offset financial losses amid the COVID-19 pandemic, according to the Traverse City Record-Eagle.

The nine-hospital health system took a financial hit from the suspension of elective procedures and pandemic-related expenses. Overall, Munson lost about $140 million in revenue from March through June, in addition to about $10 million in COVID-19-related expenses, according to the report.

The health system will cut 250 positions, including 25 leadership positions, Munson spokesperson Dianne Michalek told the Record-Eagle.

Layoffs began June 29 and June 30. Munson did not indicate what positions were affected by the cuts. However, Ms. Michalek told the newspaper Munson Medical Center no longer has a COO. She said layoffs will be ongoing, and timing will depend on the department, the role and the health system's transition plan.

As part of Munson's long-term COVID-19 recovery plan, the health system has also reduced hours for employees or furloughed them, and vice presidents and above took pay cuts of at least 20 percent. Additionally, administrators and managers did not receive bonuses this year.

The health system has nearly 9,000 employees.


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