St. Charles Health System has reported it lost $39 million in revenues from canceling elective surgeries in response to COVID-19 and executive team members volunteered to take a 10% pay cut through the end of the year, according to a hospital announcement.
In addition, the four-hospital system increased its spending by $6.5 million to purchase extra hospital beds, personal protective gear, screening tents and supplies, ventilators and new technology for virtual visits.
“We need to take action to improve our financial stability, but we are absolutely committed to doing that in ways that have the least impact on our caregivers,” said President and CEO Joe Sluka said in a prepared statement.
The hospital system also will allow:
- Temporary reduction in hours, unpaid time off and a summer sabbatical to caregivers who qualify;
- Caregivers in non-patient areas to take unpaid time off during extended closures around the Fourth of July, Thanksgiving and Christmas holidays
The health system has set a goal to “break even” for two months by the end of 2020. But even if St. Charles is able to hit that benchmark, current projections show the organization may still lose more than $50 million this year.