KANSAS CITY (AP) — The financial squeeze of the new coronavirus outbreak has led Children’s Mercy hospital in Kansas City to furlough nearly 600 employees for up to two months,
The furloughs will begin Sunday and even top executives will see a pay cut. That cut ranges from 20% for hospital vice presidents to 30% for CEO Paul Kempinski.
The virus has led to a significant drop in patients coming in for other ailments, as elective procedures were suspended and outpatient clinic visits limited last month to prepare for a surge in COVID-19, Kempinski said. That’s costing the hospital net revenue of about $1 million a day.
“COVID-19 is having a crushing, negative impact on patient care access, our employees and our financial performance,” Kempinski said.
The hospital had already taken several cost-saving measures. It eliminated more than 200 vacant positions and suspended most of its capital spending.
Being furloughed allows employees to file for unemployment benefits, Kempinski said, and the hospital will continue to pay their health insurance premiums.