ASHLAND — University Hospitals announced Wednesday it will temporarily reduce work hours and pay for employees not directly involved in patient care due to COVID-19.
Hospitals across the nation have been impacted financially by the high costs associated with preparedness for a surge in COVID-19 patients and a sharp decline in revenues from the suspension of non-essential surgeries and procedures, UH said in a press release.
The Cleveland-based healthcare system operates several north central Ohio facilities, including the UH Samaritan Medical Center in Ashland and the UH Samaritan Richland Urgent Care Center in Madison Township.
As a result, the system said for an initial period of 10 weeks that it will reduce hours and pay by 20 percent for about 4,100 caregivers not directly involved in patient care.
Executives, directors, non-clinical managers, department chairs and division chiefs will have their pay reduced while continuing to work their regular schedules.
Caregivers affected are salaried and hourly non-clinical staff throughout the health system. Exempt, salaried caregivers will take one week off of every fifth week. Non-exempt, hourly caregivers will work 20 percent fewer hours each week.
Impacted caregivers who are currently full-time and moving to reduced hours and pay will maintain eligibility for full-time benefits. Caregivers may use accumulated paid time off and sick leave banks to continue pay for days not worked.
During this time, UH is also allowing caregivers to go into arrears on PTO up to 40 hours.
In addition for all caregivers, UH matching contributions to 403(b) and 401(k) plans are suspended temporarily, beginning with the first pay in May. Planned merit pay adjustments are delayed until the end of the calendar year.
“Our most valuable resource is our people. Our approach is to do what we can to assure that UH caregivers do not go without a paycheck and that we preserve the talents and character that define our organization,” said UH Chief Executive Officer Thomas Zenty III.
“We take these actions reluctantly and with deep appreciation for everything our caregivers continue to do to support the health and well-being of our communities,” Zenty said.
The decision to take these actions follows a detailed assessment of financial models, capital expenditures and other costs. Although UH is making applications for resources available through FEMA and the federal CARES Act, any recoveries from these programs will not make up for financial losses, Zenty said.
According to the press release, it’s estimated that Ohio hospitals are losing $42 per million per day and spending $5 million per day on increased costs of supplies.
“University Hospitals, like so many other organizations, has continued to provide world-class care for all patients and caregivers while managing the dramatic impacts of the panemic,” Zenty said.
“These actions assure the continued financial strength of our health system, our ability to respond to this crisis and to continue care for all of our patients’ needs now and in the future,” Zenty said.
UH has already assembled teams and is prepared for a swift and strong resumption of full services to the communities it serves.
“We remain positive that this will occur sooner rather than later, and we will be positioned to serve our community,” Zenty said.
