MORGANTOWN — WVU Health System and Mon Health System have both taken cost-saving measures to cope with the reduced patient volumes and revenues resulting from the COVID-19 panic.
The Dominion Post sent questions about the measures to both entities. Here are their answers.
WVU Health System
WVU Health System provided a copy of an email President and CEO Albert Wright send to employees on April 6 outlining the system’s four-point plan.
“Our obligation through this global crisis is to care for COVID-19 patients who require hospitalization, while still caring for those non-COVID-19 patients who need our care on an emergent basis,” he said.
Its hospitals have capacity in the form of available beds to manage a surge, “and new data suggests that we may be spared what everyone is seeing play out in many other parts of the country where many hospitals are overwhelmed.
“Our capacity, however, has come at a price – literally. Our surgical, procedural, and clinical volumes are all down significantly, as they are at all hospitals and health systems across the country. Not surprisingly, this crisis has placed a significant and unsustainable financial strain on our all hospitals.”
Wright said he believes their approach to managing the strain will set them apart from other hospitals and health systems. “Our core belief is that caring for people extends beyond our patients; it extends to our staff.”
WVU Health System has put in place a salary guarantee for low-census staff. “We do not want to layoff or furlough employees, but also understand that many department staffing levels are based on clinical volumes.”
Since volumes have dropped, he said, many people are not as busy as they were previously. They’ve developed a work-reassignment program, and are working to match people with new roles or shifts. “If we’re unable to make a match and the only alternative is for you to go home, our commitment to you is to pay you at 75% of your current hourly rate and your current work status.We will also preserve your benefits.
“This will enable us to keep you on the WVU Medicine team while providing you guaranteed employment and benefits with an hourly rate that is close to what you normally make. We will reassess this in mid-May.”
To pay for the plan, the salaries of the health system CEO and hospital CEOs, as well as select senior executives, will be reduced 10% for the next six months.
They are enacting a hiring freeze for the next three months across the health system, managed through the local hospitals. The hospital CEO will have final sign-off on requests to backfill any critical positions.
The system is also suspending the employer match to everyone’s 403(b) for the remainder of 2020, starting this month. Employees are able to change their own contributions at any time should they elect to do so.
Mon Health System
Mon Health System President and CEO described Mon’s measure in a phone interview.
“It’s a trying time,” he said. “Our goal is to keep people stable, provide pay and benefits always to our staff. We’re not backing away from the people who are our first responders.”
They’ve seen a nearly 50% reduction in revenue since second half of March, he said.
“We have to manage our enterprise so we’re here for the next generation of health care workers and the next generation of community members who use Mon as their health care provider of choice.”
Goldberg emphasized, “Mon Health System has not furloughed or laid off any employees.”
When the patient census comes down, they flex to the volumes, he said. They encourage people to take paid time off or vacation leave, or they can opt to go unpaid and save vacation time.
Goldberg took a 10% reduction, said, which was announced April 2. The executive team took reductions, and doctors, managers and directors took elective pay cuts. Management took varying percentages based on their ability.
Mon Health has been working with any staff who are eligible for federal support under the CARES Act and other federal measures, he said.
Mon Health has put hiring nonessential non-patient facing positions on hold until they know more about the post-COVID-19 impacts. They’ve also delayed retirement supplemental contributions, which are paid at the end of the year, and they will reassess after the pandemic and its impacts abate.
Mon Health has applied for federal assistance under CARES and received $7 million as a percentage of its 2019 Medicare reimbursement, he said. Some Mon entities “We applied for other small business loans with some of our entities, payroll protection. We’ve also applied for advance Medicare reimbursement.”
All that is to replace revenue lost as they’ve suspended elective surgeries procedures and reduced their volumes.
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