KALAMAZOO, MI (WKZO AM/FM) — Bronson Healthcare has announced a new series of furloughs planned as the COVID-19 pandemic causes financial woes for Michigan hospitals.
The healthcare provider says the state-mandated suspension of all elective surgeries, procedures, and other medical services is cutting into its operating revenue, and that the anticipated shift toward treating individuals with COVID-19 has required costly purchases of new technology and resources.
All elective medical and dental procedures were temporarily halted on March 20th after Governor Gretchen Whitmer signed an executive order, postponing the services until further notice to shore up hospital resources for COVID-19 patients.
Bronson is not the only hospital network struggling during the outbreak, with Calhoun County’s Oaklawn Hospital and Southeast Michigan’s Beaumont Health both announcing layoffs as they struggle to operate under decreased revenue.
A released statement says that Bronson Healthcare will be implementing the staffing cuts over the next few weeks for several hundred employees, most of whom work in non-clinical roles. Furloughs are anticipated to be in place for 16 weeks, though some employees may be reinstated if their area of service requires increased need.
Bronson executives and high-ranking staff will see pay reductions proportionate to their annual salary level. CEO and President Bill Manns, who took over leadership at the beginning of this year, will be taking a 25% reduction to his salary.
Workers will also have employer-sponsored matches of 401k/403b retirement account contributions suspended for the remainder of the year.
Across its multiple hospitals, there are 34 patients currently being treated for COVID-19, with 36 individuals reported to have recovered from the illness and 11 who have died.
While Bronson is prepared for a surge in cases, hospital officials cite data models that show Southwest Michigan experiencing community spread of COVID-19 continuing into the fall if moderate social distancing practices remain in place, in contrast to regions like Southeast Michigan which predict a peak at some point during early spring.
Manns says that the organization is planning to ramp up surgeries and other allowed procedures with the goal of having 100% of hospital services in place again by September, and all practices by August.
“If we can do it sooner, we will. However, the availability of enough PPE to ensure the safety of our staff and patients in all settings continues to be a limiting factor,” said Manns in a released statement.
Bronson officials say that financial and supply donations from the local community have contributed to the hospitals’ resources. FEMA reimbursement grants, CARES Act relief grants, as well as other state and federal aid are being considered to assist the hospital network’s operations.
Despite the current financial situation, expansion projects including the Bronson Primary Care Partners Center and a new lab at Bronson Methodist Hospital in Kalamazoo are still planned to open in July. The healthcare provider says that the Kalamazoo Bronson Cancer Pavilion and new Bronson South Haven Hospital are both slated to open in early 2021.
