When the COVID-19 pandemic hit Upstate New York, the University of Rochester Medical Center prepared itself for a surge of patients – a surge that never happened.
Now the institution is trying to manage the financial hit it’s taken in the wake of the pandemic. This week, many URMC employees are being furloughed and taking pay cuts. Around 3,400 workers will be affected.
"Unfortunately now, it’s been two months without non-essential surgeries, clinic visits, and we have 200 open beds that we have not been using,” said URMC Chief Medical Officer Dr. Michael Apostolakis. “This has caused financial crisis for us."
URMC Chief Financial Officer Adam Anolik says measures required to prepare for the surge in COVID-19 patients increased costs, while reducing revenue by $130 million per month.
“Our latest estimate right now, is our clinical revenue will fall short of budget by $386 million period from March to June,” Anolik said.
Anolik said they do expect that gap to shrink over time.
Associate Vice President of URMC Human Resources Kathleen Gallucci said this is an attempt to bridge the gap - and that the furloughs are a last resort after all other options were explored.
Apostolakis says the medical center is prepared to move forward with the local reopening of the economy.
Leaders say the cuts are not a permanent move.
Gallucci said 81 percent of the furloughs are partial.
"All are concerned, no one's happy about taking a pay cut, no one's happy about being furloughed, but the understanding and the pulling together of the faculty and staff in is part of what keeps me going,” Apostolakis said. “It's just an amazing response as a whole that we've had."
Hospital officials say they hope to be back up to 75 to 90 percent of its operations by the end of August, which would mean the majority of those affected by the furloughs will be back.
This of course is dependent on the state of the virus’ spread in the next few months.