HILLSDALE, MI – (WTVB) – Due to significant loss in patient volumes and revenue in the early stages of the COVID-19 outbreak in the United States, Hillsdale Hospital announced on Friday they have been forced to reduce its staff through voluntary and involuntary retirements and layoffs.
Nearly ten percent of Hillsdale Hospital’s current workforce is being laid off for an initial 45-day period. The lay offs are not intended to be permanent. At the end of the 45-day period, operations will be re-evaluated to determine whether those affected can be brought back to work at that time.
Before Hillsdale County had any confirmed COVID-19 cases, the hospital saw such a sharp decline in volumes due to cancellations by concerned patients that the resulting decrease in revenue was projected to add a $6 million loss to the hospital’s bottom line by the end of its fiscal year ending June 30.
J.J. Hodshire is the chief operating officer and will become C.E.O. of the hospital on June first.
He says the vast majority of their patients rely on Medicare and Medicaid to pay for their care and that the current structure of payments by the state and federal government leaves them fighting for a zero percent operating margin.
Hodshire adds that when volumes decrease by half in some departments overnight due to a crisis like COVID-19, they’re left to make tough decisions that have a significant impact on the hospital.
A hospital news release went on to say that due to the executive order from the governor of Michigan prohibiting elective procedures, the hospital had to make adjustments, as the circumstances would get significantly worse before they became marginally better.
