One of the state’s largest hospitals is announcing major budget cuts today – joining other medical centers in trimming salaries, reducing hours and laying-off staff. The University of Virginia Medical Center has been losing $3 million a day during the coronavirus pandemic.
During the COVID-19 crisis hospitals in Virginia were required to cancel all unnecessary procedures, diagnostics and patient visits in preparation for what might have been a tidal wave of coronavirus.
“We have reduced the number of surgeries we’re doing by about 70% and the number of clinic visits by 90%, " says spokesman Eric Swensen. "We have hundreds of in-patient beds that are open.”
As a result UVA Health Systems is running a deficit of $85 million a month, making budget cuts necessary. The organization employs more than 10,000 people, and an unknown number will be furloughed – likely for three months. Others will have fewer hours, and those who are paid the most – doctors and administrators – will see a pay cut of 20%.
At Virginia Commonwealth University’s med center, Dr. Gonzolo Bearman says UVA is not alone. “I think it’s going to be a financial squeeze for almost all health systems which will certainly have to be backed up by state and federal monies.”
Earlier this month, Carilion Clinic’s CEO also announced that budget cuts are coming. Hospitals say they’ll monitor the situation and bring people back to work as needed, and – they add – there will be no reduction in the quality of patient care.
***Editor's Note: The University of Virginia and Carilion Clinic are financial supporters of Radio IQ.
