UMMC laying off 250 positions due to financial deficit from coronavirus pandemic
JACKSON, Miss. (WLBT) - The University of Mississippi Medical Center is laying off 250 people from their workforce.
The information was outlined in a memo sent out to employees Wednesday morning.
The hospital cites financial hardships from the coronavirus pandemic.
The memo states in part:
“Despite some areas within our organization being busier than ever in response to COVID-19, patient volumes dropped significantly and revenues decreased correspondingly. We have experienced a patient care revenue loss of more than $1 million per day since mid-March, and this loss continues day after day... Our internal projections show a negative $100 million financial impact to UMMC.”
In order to offset these financial challenges the University hospital is taking the following steps:
Reduction of 250 positions
Salary reductions for executive leadership: Executive leaders, including myself, the Chancellor, members of the Executive Cabinet, Deans, School of Medicine Department chairs and Health System executives have reduced our salaries by 15 percent for three months starting May 1.
Restriction on New Hires
Restriction on Travel
Capital Budget Reduction
Salary Reductions: Salaries for faculty and staff earning more than $100k per year will be reduced by 10 percent for three months starting July 1, 2020.
Indirects and Released Funds: Until further notice, indirects from grants and released funds will not be returned to departments.
Dr. LouAnn Woodward, UMMC vice chancellor for health affairs says the hospital has never faced this type of challenge.
“I would dare say UMMC has not faced a challenge of this magnitude before in all of its 65 years of existence. It will take guts, grit and fortitude to pull through to the other side. Today’s action is an example of how very tough decisions with difficult consequences will be required. However, I am confident we can, and we will, weather this storm and emerge stronger than ever,” said Dr. Woodward.”
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