The hospital said revenues were down $16 million in March, leading to the decision to reduce hours for some workers and place others on temporary leave.
Sarasota Memorial Hospital announced today it will temporarily furlough workers and reduce hours for other employees, citing financial challenges associated with COVID-19.
The hospital did not disclose specific cost-reduction plans, stating in a release that department heads will work to finalize cuts in the near future. The hospital said it saw a $16 million reduction in revenue in March and expects increased losses in April and May.
“While we have implemented a hiring freeze for all but mission-critical positions, and reduced staff’s hours in areas that have had to cancel services, COVID-19 still has cost SMH millions of dollars,” SMH President and CEO David Verinder said in a release. “We must take greater action now to sustain our ability to care for the community throughout and after this crisis.”
The hospital previously canceled nonessential procedures as part of its response to the coronavirus. In the release, SMH said there has been a 30% decrease in hospital inpatients, a more than 50% decrease in surgical cases, a 66% decline in urgent care center volume and a 45% decrease in emergency care center volume.
The hospital said it is also implementing pay cuts for senior leaders and suspending noncritical patient services and projects.
Of the 53 individuals to test positive for COVID-19 at Sarasota Memorial Hospital, five have died and 28 remain hospitalized.