Munson Healthcare is furloughing employees across its hospital system.
Munson Medical Center in Traverse City is one of the hospitals where employees will be impacted.
Munson President and CEO Ed Ness made the announcement in a video Thursday morning and called the decision to furlough some employees difficult but necessary.
Munson has seen a 50 to 60 percent drop in patient volume in some of their locations.
That’s because of executive orders signed by Governor Gretchen Whitmer asking for elective surgeries and outpatient visits to be postponed to help slow the spread of the coronavirus.
That has left Munson’s operating rooms and outpatient clinics empty.
“So, just like our local restaurants and retail stores, hotels and resorts that are seeing fewer customers, we’re seeing fewer patients, and that has caused a dramatic economic and operational ripple throughout our entire organization. We are currently projected to lose between $7 and $10 million a month as long as this situation continues,” said Ness.
Now for employees that are furloughed, that means they temporarily won’t have working paid hours but they will keep their benefits.
Munson is also reassigning some employees to other parts of their system to avoid furloughs.
Munson’s president and CEO added that senior leadership is also taking a pay cut.
We are working to speak with Munson about the decision to furlough some of their employees and will have more details on 9&10 News at 6.
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