MARSHALL, MI (WKZO AM/FM) — A Calhoun County hospital is being forced to layoff staff after facing drastic financial challenges during the COVID-19 pandemic.
Oaklawn Hospital network is laying off around 200 employees out of its total 1,150 staff in an effort to cut costs. The healthcare provider has also announced new policies for remaining employees, including reduced salaries and the suspension of paid time off and holiday pay.
Hospital leaders say that revenue has seen a 60% decline since the state and federal governments ordered healthcare providers to suspend non-essential surgeries. Elective surgeries and medical programs account for a large percentage of hospital revenue across the state, often drawing in more money in insurance payments and out-of-pocket costs than services like critical care or checkups.
Layoffs are expected to begin in June in order to address the financial shortfall. Hospital President and CEO Greeg Geeg has said that running on reduced revenue is unsustainable and unfortunately the staff cuts are necessary for Oaklawn Hospital to stay afloat.
The hospital has so far treated seven COVID-19 patients, and in March began to prepare for the outbreak by expanding the number of beds at its facility.
Oaklawn Hospital has seen a flood of donations by people supplying N95 masks, handmade masks, goggles, gloves, and meals for staff who faces critical shortages during the outbreak.
