Overview of COVID-19 Recovery Plan
Wednesday, April 22, 2020
Summary:
The Mohawk Valley Health System (MVHS), like other hospitals and health systems across the country, is experiencing devastating financial losses ($5 million each week) due to investments made in expanding our capacity for a potential surge of COVID-19 patients while simultaneously suspending lucrative elective surgeries and procedures (as mandated by Governor Cuomo) and seeing a drop of more than 50 percent in volume for services across the entire health system. We now see our future in three phases.
First, we are seeking additional federal financial relief and support to cover the huge costs we incurred to expand our capacity to be prepared for a surge of patients. And, hopefully, some consideration for the loss of volume. We are grateful for the funds from the federal stimulus package, but far more will still be necessary.
The next phase, which we are now working toward, is recovery with a four-month COVID-19 Recovery Plan, which is summarized below. And, then finally, we will enter the rebuilding phase from this pandemic –and that will likely take a few years.
Goal of Four-Month COVID-19 Recovery Plan
This four-month recovery plan is designed to address financial losses associated with the COVID-19 pandemic while also ramping up plans for reopening our services, with the target goal of being back at 80 percent of our volumes by the end of Summer 2020.Details of PlanCost Saving Initiatives implemented on Friday, April 17, 2020
Salary reductions for MVHS leadership and employed providers
Centralized control of overtime, with all overtime needing approval by COO Mansoor Shahid or CFO Lou Aiello
Hiring freeze in place
Freeze on new tuition reimbursement. MVHS will pay for the semester tuition that had already been committed
Examining every expense and cost center to determine areas of opportunity (e.g., contracts, potential discounts, memberships, travel, events).
Freeze on Merit Increases for the duration of the furlough