ROCHESTER, Minn. – Mayo Clinic says it will have to start salary reductions and temporary employee furloughs on April 28.
The health care provider says it informed employees Friday morning and issued the following statement to the public:
“Mayo Clinic staff are doing extraordinary work leading in the response to the COVID-19 pandemic. We are proud of and committed to our staff and our communities as they come together to fight this global health crisis. Mayo Clinic is facing unprecedented challenges as a result of these circumstances, including a financial impact that requires significant adjustments to our operations. The decision to proactively postpone elective patient care was the right one, but it eliminated the majority of our revenue at the same time we are making critical investments to develop and expand testing, conduct research to stop the pandemic and re-align our facilities and care teams to treat COVID-19 patients.”
“Mayo Clinic is taking necessary steps to reduce expenses but additional measures are needed to ensure that we can emerge from this situation in a stable position. While we were able to protect full pay and benefits for our employees through April 28, temporary furloughs of some staff and salary reductions will be required after that time. We will work with our teams in the coming weeks to ensure that our staff are supported, that the duration of this disruption is as limited as possible, and that we are ready to ramp up quickly and resume full operations when it is safe to do so.”
These moves affect the entire Mayo Clinic system. The number of Mayo Clinic staff who will have a reduction in pay is about 1/3 of the 70,000 workforce. No further details are being released at this time.
Mayo Clinic says it employs 36,330 people in Rochester; 15,420 in Iowa, Wisconsin, and the rest of Minnesota; 7,085 in Arizona; and 6,379 in Florida.
Senator Carla Nelson (R-Rochester) issued the following statement:
“Mayo isn’t just the largest private employer in the state; it is one of the most important organizations in the fight against the coronavirus. When the state had a huge backlog of tests, Mayo stepped up and cleared it out. They are a world leader advancing treatments for the virus, like convalescent plasma therapy, antibody testing, and vaccine development. If anyone is going to get us out of this crisis, it will be Mayo."
“Mayo has stood tall in service to our state and has not asked for financial support for these actions. In order to recover from this crisis faster, I am seeking state financial relief for Mayo for this short time. Support for Mayo now will be in the long-term best interest of our state as they tackle the coronavirus pandemic, inspire hope, and contribute to our health and wellbeing by providing the best care to every patient. “
Republican Congressman Jim Hagedorn (MN-01) also issued the following statement in response to Mayo Clinic’s decision:
“The Mayo Clinic and our fine rural hospitals have made enormous sacrifices, financial and otherwise, to help mitigate the spread of the coronavirus."
“Without a doubt, staff layoffs, reduced work hours and overall revenue losses directly impact workers, families and our economy in Rochester and across southern Minnesota. Believe it or not, the jobs of 100,000 southern Minnesotans are, directly and indirectly, tied to medical care."
“Also important is how the strategy to prepare for a possible surge of coronavirus cases, particularly postponed treatments and procedures and closed offices, has dramatically reduced access to medical care."
“As someone whose life has been saved due to an accidental and unexpected medical diagnosis, prompt cancer treatment, and the power of prayer, I am concerned with the likely loss of life related to Americans who are avoiding medical care or are prevented to visit the doctor due to the coronavirus."
“The question must be posed: Over these past weeks, how many Americans have unwittingly put off critical consultations, diagnostic tests and the initiation of lifesaving therapy? Probably more than we can imagine."
“This past Tuesday, I respectfully suggested to Governor Walz that we (all of us) encourage our Minnesota medical leaders to quickly devise a plan of care to fully accommodate all patients in need of timely, quality consultation and treatment."
“It is time to take a more explorative look at both sides of the medical care ledger, those on the coronavirus-case side and all other patients. We must consider the cost (in lives) of the current strategy and work even harder to save people on both sides of the ledger."
“Make no mistake, our medical professionals and providers, including the Mayo Clinic, have performed extraordinary, heroic work. It is time to find ways for our medical care staff to again care for all Minnesotans with important needs."
“Throughout this coronavirus ordeal, I have been concerned with the loss of revenue and jobs of all southern Minnesota medical providers. In fact, last week I sent a letter to Health and Human Services Secretary Alex Azar seeking expedited funding from the recently enacted COVID-19 relief package to support our fine rural hospitals."
“It has been my honor to help the Mayo Clinic receive fast-track authority to develop innovative and lifesaving COVID-19 tests, including its emerging serologic test that will help protect the lives of Americans and help our nation get back to work."