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MultiCare announces furloughs for 6,000 workers amid COVID-19 financial shortfalls
The coronavirus pandemic has hit all sectors of the economy, including medical.
In an announcement Wednesday, MultiCare Health System of Tacoma said 6,000 mainly nonclinical employees will be expected to take 17-shift furloughs between May 10 and Jan. 2 “to support the organization’s viability and financial health in the near and long term.”
Nonclinical work would include positions in areas such as human resources, marketing, finance, administration, administrative support and the call center.
Additionally, an internal Q&A offering guidance to employees noted: “Union members continue to contribute toward our goal of $160 million in total savings through the end of the year by adjusting staffing levels to match patient volumes per normal operating procedures and applicable union contracts. This could include low census, re-assignment, floating or voluntary furloughs.”
The furloughs announced Wednesday are the equivalent of one shift per pay period for the remainder of the year, according to the health system, and are set to begin next week.
In its statement, MultiCare said it “has taken steps over the past few weeks to help protect the organization’s long-term health and capacity to fulfill its mission amid $160 million financial losses as a result of the COVID-19 pandemic. Some of the steps already announced include implementing executive compensation reduction, deferring hiring for some roles, introducing a voluntary furlough program for employees and re-evaluating open positions.”
It said it hoped the furloughs would help MultiCare “avoid widespread layoffs throughout the system.”
According to the announcement:
▪ Non-exempt (hourly) employees can choose between using paid time off (if available) or taking unpaid time for their 17 shifts.
▪ Exempt (salaried) employees can choose between using PTO (if available) or taking unpaid time, depending on if an employee chooses to take their furlough days in increments of single shifts or full work weeks.
▪ Furloughed employees will receive their basic health benefits but will continue to be responsible for any required health plan contributions and dental coverage premiums.
▪ Holidays that fall within the time period can count toward the 17 shifts.
Ten of the days must be taken by Sept. 30, according to guidance sent to workers, a copy of which was sent to The News Tribune.
The internal memo also noted the furloughs would save MultiCare an estimated $28 million.
According to the health system’s president and CEO, Bill Robertson: “We are striving to find solutions that balance stewardship and kindness as we seek ways to recover our operating losses while preserving positions across the organization. It is why we are allowing employees to utilize accrued PTO under these furloughs as we’re hoping to minimize the financial impact to employees.”
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