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Trinity Health System making job cuts

 MGN
MGN (KKTV)
Published: Jun. 30, 2020 at 12:26 AM EDT
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Trinity Health System sent out a memo to employees about making job cuts and doing some restructuring amid the coronavirus pandemic.

The memo includes severances and extended or new furloughs, as well as reduced hours.

"We received substantial grants from the CARES Act passed by Congress. That money is already spent. It helped cover a few months of operating losses but does not provide relief going-forward," says Trinity CEO Mike Slubowski. "Unfortunately, we are still losing millions of dollars per day, and the COVID-19 situation continues to evolve with cases increasing in some regions in recent weeks."

The full statement from the CEO can be seen below:

Dear Colleagues, I hope you and your loved ones are healthy and safe. Our world remains turbulent as we make our way through this pandemic. We continue to see surges of COVID-19 across the country. We also see and feel the outpouring of emotions and the call for social justice to address and eliminate racism. While the economy is opening up slowly, many businesses are suffering. Schools are deciding whether they can open this fall. Airlines, hotels, restaurants and retailers are struggling. Many people are not practicing social distancing or wearing masks, creating further concern about COVID-19 growth. And, within our own national health ministry, we still have more than 600 COVID-19 patients in our hospitals every day, and more than 350 colleagues who are quarantined at any one time as a result of the virus. So, in light of this environment, I am sharing important updates, including the most difficult news that I’ve ever had to deliver. First, thank you for all you have done and continue to do to support our communities throughout the COVID-19 pandemic. Your service and dedication have been extraordinary. You demonstrated that we can do remarkable things in remarkable timelines, together. You not only continue to care for people afflicted with COVID-19, but you’ve also worked hard to welcome back patients for outpatient and elective services. The return of patient volume has been gradual and varies greatly by community. Second, we continue to face significant stewardship challenges. Even with the restoration of some patient volume, we are still losing millions of dollars each day. We are projecting that operating revenue for our next fiscal year will be $2 billion less than previous levels. And, that assumes there are no more significant surges of inpatients with COVID-19, since that will require more inpatient resources and will negatively impact consumer confidence in coming back for outpatient and elective services. The pandemic dramatically affected our Trinity Health ministry. The world has changed and will remain changed for the foreseeable future. Most industries and organizations have been negatively impacted, and economic recovery will be slow over the next two to three years. In the fourth quarter of fiscal year 2020, we made very tough decisions to address the situation, including colleague transitions and major reductions in spending. We received substantial grants from the CARES Act passed by Congress. That money is already spent. It helped cover a few months of operating losses but does not provide relief going-forward. Also, it is not likely more sizable funding is coming. Unfortunately, we are still losing millions of dollars per day, and the COVID-19 situation continues to evolve with COVID-19 cases increasing in some regions in recent weeks. So, it pains me to share that these circumstances require us to take even more difficult steps to support our future. We must restructure and re-size our ministry, redesign our work and reduce our costs with this lower revenue base. Unfortunately, this requires additional colleague transitions – including position eliminations and severances, extended or new furloughs, and extended or new reductions in schedules. These decisions are being customized to each community we serve based on the related circumstances, including volume growth projections and the cost and revenue challenges in each market. These are extremely difficult and painful decisions for our organization but are necessary to ensure that we can continue to fulfill our mission in the communities we serve. Starting this week, we will begin colleague transitions, focusing primarily on our non-clinical, administrative functions across our ministries, including System Office. Your senior leaders are analyzing your Ministry and System Office operations to determine what changes are necessary. Every one of our health ministries is at a different place in the recovery cycle, and their plans are tailored to local circumstances. Colleagues will be informed by July 31, 2020 and as early as this week.

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