Winneshiek Medical Center takes steps to address financial stability
The COVID-19 pandemic has created a significant financial disruption for Winneshiek Medical Center. The medical center is projected to lose approximately $6 million from operations by the end of June 2020. Without intervention, between July and the end of December 2020, the medical center will experience up to an additional $1.4 million shortfall, putting the organization’s mission at risk.
Lisa Radtke, chief administrative officer, Winneshiek Medical Center, says “Our primary value, the needs of our patients come first, is and will continue to be our guide. It is essential we are able to serve our patients now and into the next century. We cannot compromise our future.”
Winneshiek Medical Center has already done much to respond to this crisis. They have continued their focus on reducing operating expenses by minimizing nonessential expenditures, deferring minor equipment purchases, reducing use of supplemental staff and consulting services and deferring construction and capital equipment purchases that can be stopped without compromising patient care. Staff have taken time off without pay. Mayo Clinic Health System doctors and administrators have taken salary reductions. The medical center has received significant funding from the CARES Act to reduce their losses and keep staff pay protected.
These actions will not be enough. Going forward:
- Annual wage adjustments for staff, normally occurring in July, will be deferred at this time
- Temporary salary reductions will affect all salaried exempt employees, beginning July 2, 2020
- Departments will return to “staffing to essential workload” upon completion of the Paycheck Protection Program
- Temporary voluntary and involuntary furloughs, reduced hours and FTE reductions will be instituted in some areas
- Staff benefits will remain intact
Radtke says, “We believe these difficult steps will allow us to maintain the financial stability to continue our mission without making permanent workforce reductions or adjustments. We expect these decisions to be temporary, and are confident Winneshiek Medical Center will rebound from this pandemic, emerge in-tact, mission-focused, true to our values and ready to resume our path to 2030 and our ten-year vision. We very much look forward to that day.”