OSF HealthCare is projecting a financial hit of $330 million through the end of its fiscal year as the COVID-19 pandemic decimates patient counts in other areas of the network.
In an internally-circulated video obtained by WCBU, OSF chief financial officer Mike Allen said revenues have dipped by 40 percent in just the last three weeks, as COVID-19 preparations ramped up.
"It may seem strange that an international pandemic where hospitals and healthcare systems are seeing dramatic increases in patients with life-threatening respiratory conditions from COVID-19 would create concerns about finances," said OSF chief executive officer Bob Sehring. "The reality of the situation for OSF and all healthcare systems across the country is that our volume of activity has decreased rapidly as services were closed down to ensure preparation for COVID-19."
Allen said inpatient services are down 20 to 30 percent, surgeries are down 50 to 60 percent, and patient volume at clinics and OSF Urgo facilities are down as much as 80 percent.
Illinois Public Radio previously reported the healthcare network is requiring some employees not working directly with patients to use mandatory paid time off, or an unpaid leave of absence which would allow them to apply for unemployment. They would retain years of seniority and health insurance benefits during unpaid leave.
Top executives will take a five percent pay cut. Some executives opted to contribute an additional five percent to OSF's Above and Beyond Fund to support employees in financial need. Sehring said the compensation shifts would allow for more funding in critical areas, and help paying for childcare and other needs for workers on the front lines.
Allen said in the document that additional measures include hiring freezes on certain positions and reducing retirement plan contributions.
OSF is also looking at training pandemic health workers to staff its digital solutions division. The healthcare network operates a chatbot, Clare, and a 24/7 hotline to answer COVID-19 questions from patients. OSF is also retraining and moving employees to areas of need, particularly OSF Little Company of Mary in the southwest Chicago suburbs.
The measures are in effect through September 30, the end of OSF HealthCare's fiscal year.
WEEK-TV first reported on the revenue projections Tuesday. An OSF HealthCare spokesperson said the TV station obtained the information from an "unknown source" and couldn't confirm details.
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