20% of Hospital Workforce Affected
After carefully exploring all options, Carthage Area Hospital has recently announced a 20% reduction in staff through unpaid leave amid the COVID-19 pandemic. These measures include temporary salary reductions, placing employees on unpaid leave, and reduced work hours. A total of 83 employees will be affected. Additionally, the hospital’s senior team, managers, and medical staff have agreed to salary reductions. Employees were notified on Wednesday, Thursday, and Friday of this week. Many U.S. hospitals and health systems have experienced a drastic decline in patient volumes due to the reduction of elective surgeries and procedures, which has taken a harsh hit on annual revenue.
“This was a difficult decision that was not made lightly. It will ensure the long-term viability of the hospital during this turbulent time we’re all experiencing. We need to remain financially stable. This is designed to be a temporary solution while continuing to meet the health care needs of the community, said Rich Duvall, Carthage Area Hospital CEO.
In the interim, the hospital plans on utilizing some employees in other areas of need. This may be necessary for staff to serve in a different capacity to best serve patients. The hospital has also submitted their application for the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) PPP (Paycheck Protection Program) Loan Program.
Employees on unpaid leave will not experience any disruption in their health insurance benefits. The length of unpaid leave is undetermined at this time.