Kalispell Regional Healthcare is furloughing 600 employees and reducing the salaries of executives and physicians. | Facebook
Kalispell Regional Healthcare is furloughing 600 employees and reducing the salaries of executives and physicians. | Facebook
Approximately 600 employees began being furloughed starting April 15 by the Kalispell Regional Healthcare, a result of declining revenue from the coronavirus pandemic.
Kalispell Regional Healthcare will also be reducing the salaries of executives, physicians and executive directors as a way to cut costs, according to Flathead Beacon.
Revenue losses are expected to be over $16 million a month, Kalispell Regional Healthcare officials told the outlet, “which could jeopardize the organization’s ability to serve the long-term health needs of our community.”
But which types of employees and departments to receive furloughs wasn't mentioned by the officials.
Kalispell Regional Healthcare issued a press release on April 13 to inform the public of its strengthening COVID-19 responses and clinical teams, according to the Beacon. The hospital has also increased support staff and resources that are “needed to deliver life-saving care and ensure patient and staff safety as a result of the pandemic."
With the increase in the hospital's COVID-19 response, many other services it offers have been paused "for the health and safety of our community," Kalispell Regional Healthcare said in the press release.
“The compounding effect of the loss of patient volumes, cancellation of elective surgeries, and the closure of entire service lines has had a tremendous financial impact on [Kalispell Regional Healthcare],” president and CEO Craig Lambrecht said in a statement. “Cost-cutting efforts have been under way, but unfortunately those efforts alone cannot remedy the significance of these losses a time when we must safeguard a clinical stabilization program.”
While the hospital is "furloughing and reducing hours/shifts for certain employees,” it will still give furloughed employees health insurance benefits through Aug. 31, 2020, according to the Flathead Beacon. The hospital will also offer furloughed employees access to the hospital's Foundation's Employee Crisis Fund, which will give financial support to employees who need it.
“I am confident that we will ramp back up quickly once it is safe to do so,” Lambrecht said in his statement. “It is my hope that everyone can weather this uncertain time and emerge safe and well.”