The University of Arkansas for Medical Sciences, struggling as all hospitals are under the loss of revenues caused by COVID-19, is reducing hours and pay for staff in areas across UAMS, spokeswoman Leslie Taylor said today.
In an email, Taylor wrote:
Like other health care institutions in the state, the coronavirus impacted our financial position as we postponed elective surgeries and other revenue-generating activities. While we have been adding and redeploying staff in areas of highest need, we have seen a decrease in workload in many other areas. We are doing everything in our power to avoid job cuts and furloughs. Our team members are the backbone of UAMS and when we fully open our operations, we want all hands on deck.
As a result, UAMS deployed many cost-cutting measures. A hiring pause was implemented mid- March and will continue until May 31, 2020. Additionally, we have aggressively explored additional ways to cut operating costs and generate revenue, including applying for grant funding that is available.
Despite this aggressive approach, based upon the financial losses, we have determined that it is necessary to look at other options as it relates to our workforce. Effective May 4, 2020, all staff who are currently working fewer than their normal work hours as a result of the pandemic will be reduced to an FTE between 50%-90% based upon average hours worked.
As a state-supported institution, we must be good stewards of our money and resources. We need to pay our employees for the work they do but cannot afford to pay for work not performed. We know any unpaid time is a burden, which is why the organization is looking at many other cost-cutting measures to avoid the need to implement any further actions. Our goal is to get everyone back to a full schedule as quickly as possible.
UAMS, which suspended elective surgeries and procedures on March 16, lost $16 million in March and anticipates April losses to be even steeper. Surgeries in a normal month would number around 1,500; in April there were 560, a 62 percent downturn, Taylor said. The hospital hopes to save around $4 million with the action.*
UAMS has also had extra expenses totaling between $8-$10 million related to COVID-19, including buying supplies and new equipment (including testing platforms); opening up the 24/7 1-800 call center to screen for the illness, a paid service now offered free; designing and equipping the screening drive-through; and converting the ninth floor of the hospital into negative pressure rooms.
Employees will not lose their benefits, Taylor said.
Governor Hutchinson allowed elective surgeries to begin last Friday under special guidelines, including testing. UAMS will resume elective procedures gradually, starting with advanced imaging on Monday, May 4. Taylor said the hospital will operate at 25 percent of normal capacity to keep patients distanced and safe during May.
* A previous version of this story used the word furlough. Taylor explained that these are not furloughs, merely a reduction in hours to better reflect workload.