Published in Health Care

Mercy Health parent company to furlough 2,500 non-clinical employees

BY Wednesday, April 01, 2020 04:37pm

Trinity Health, the parent corporation of Mercy Health, plans to temporarily furlough about 2,500 mostly non-clinical employees over the next few weeks.

The furloughs will affect about 10 percent in Trinity Health’s workforce in Michigan who work at Mercy Health and Saint Joseph Mercy Health System. The move will “enable the health systems to focus resources on the functions directly related to essential COVID-19 patient care needs, while protecting people and helping to prevent the spread of the virus.”

Rob Casalou, president and CEO of Trinity Health Michigan COURTESY PHOTO

Trinity Health said the furloughs “are temporary, with the goal to bring back as many affected colleagues as possible at the appropriate time, as the situation evolves.”

The health system — which has eight hospitals in Michigan, including Mercy Health Saint Mary’s in Grand Rapids and Mercy Health Muskegon — also reduced executive compensation by up to 25 percent and eliminated performance incentives during the crisis. The move affected employees at the vice president level and above.

“Our priority is the care and safety of our colleagues and the people we serve, and our colleagues have never worked harder than they are working today,” said Rob Casalou, president and CEO of Trinity Health Michigan. “These are difficult steps that are intended to make sure we are able to provide the best possible care for our patients and communities through this unprecedented time.”

Trinity Health made the moves in anticipation of a surge in patients in the coming weeks from the COVID-19 pandemic. The health system said it has lost 50 percent to 60 percent of revenues since the crisis began from the loss of elective and routine medical care and procedures and from pausing many administrative functions.

Trinity Health has annual operating revenues of $3.4 billion.

As of Wednesday, Michigan had 9,334 reported COVID-19 cases, an increase of 1,719 from the day before. There have been 337 deaths in Michigan from COVID-19, up by 78 a day earlier.

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