OLMSTED COUNTY, Minn. - Olmsted Medical Center said Monday it is projecting a loss of close to $25M for April-June due to the coronavirus pandemic and announced temporary staff reductions.
OMC said it is joining other healthcare organizations to address the financial impact caused by restrictions to elective surgeries and procedures along with the decline in in-patient visits.
OMC hospital and clinic volumes are down 60-70 percent, CEO Tim Weir said.
“Due to many years of strong financial management and the excellent work of our employees in our organization over the years, we have been able to support all our employees and clinicians through the month of April. Despite our stable financial position, we understand that appropriate fiduciary measures need to be undertaken to ensure our ability to continue to serve our patients when this pandemic abates,” stated Weir. “As of April 28, OMC’s President and CEO will further reduce their salaries to 20% from the cut they voluntarily took in early April, and all senior administrators will reduce their salaries by 15%. As of May 12, OMC directors, managers, and physician administrative leaders will take a salary reduction of 7.5%. Physicians and podiatrists will also receive salary reductions of 7.5%, as of May 12.
“Beginning on May 12, OMC will implement a combination of temporary staff reductions through furloughs in some areas and reduction in compensation/pay in other areas. Hourly employees may see work reductions, but no wage decreases will be implemented. OMC employs approximately 1,300 employees.”