Northeast Georgia Health System announced Friday it is eliminating some positions, furloughing some employees and putting a freeze on hiring because of revenue losses brought on the coronavirus pandemic.
The affected positions do not provide direct care to patients, Carol Burrell, president and CEO of the health system said in a news release Friday afternoon. She said the system anticipates as much as $250 million in losses by the end of September.
Senior leaders of the hospital are taking 25-to-30 percent pay cuts for the year, she said.
"NGHS was in a strong financial position as we entered the pandemic – thanks to an ongoing focus on responsible stewardship by our entire team including employees, physicians, leaders and board members," Burrell said. "But no non-profit health system can take this kind of financial loss without making adjustments."
The news release said 81 positions would be eliminated, 27 employees would be furloughed and some employees would have their hours reduced through September. The health system will also stop recruiting to fill 167 open positions.
Burrell also said the system has paused its match to employee 401(k) benefits through September and will evaluate offering that benefit again this fall.
"While these decisions are difficult, they are necessary to ensure NGHS can continue to provide safe and high-quality care both now and in the future," she said. "As we move forward in this evolving landscape, we will continue to communicate open and honestly. We remain committed to our core values, including responsible stewardship, in order to fulfill our mission of improving the health of our community in all we do."
Burrell said the system is projecting a revenue loss of $200=$250 million through September. The federal government, through the CARES Act, has awarded the health system $54 million, but Burrell said it is unclear how much more assistance the system will get.
In March, April and May, the height of the pandemic, NGHS saw reduced revenue across all departments, ranging from 50 percent in the emergency department, 70 percent in outpatient surgery and up to 100 percent in some areas, such as outpatient rehabilitation and some doctor's offices.
At the same time, NGHS facilities took on expensive projects such as adding hospital beds, converting rooms into ICU rooms, purchasing extra personal protective equipment and increasing testing capabilities. Burrell also said technology expenses were up as to better track COVID-19 patients and create the ability for doctors to have virtual visits with their patients.
