MONROE — Two major employers in the area, Blackhawk Technical College and SSM Health, which owns Monroe Clinic, announced employee furloughs in recent weeks in response to financial strains brought on by the COVID-19 health crisis.
SSM Health announced April 27 it is furloughing about 2,000 employees, roughly 5% of its workforce, across the organization’s four-state network. The Catholic, not-for-profit health system employs more than 40,000, including 14,500 in south-central Wisconsin, at its hospitals, offices and outpatient care sites.
Furloughs are expected to last 13 weeks, but SSM Health noted employees could be brought back sooner as normal operations resume. Monroe Clinic reported May 5 that it is beginning a “recovery phase” in its response to COVID-19.
Employees are eligible to receive state and federal assistance due to unemployment insurance and provisions under the federal Coronavirus Aid, Relief and Economic Security (CARES) Act.
SSM Health said it will cover the cost of health benefits for furloughed employees. The company also intends to provide a one-time “Return-to-Work Adjustment” to cover any difference in pay if an employee isn’t reimbursed their full base pay through unemployment.
In addition to furloughs, SSM Health is freezing executive compensation and discretionary expenses, placed a hold on open positions that are non-critical, paused or deferred non-critical expense projects and reduced support-function expenses by 20%. Annual salary increases for employees will go forward, however.
“SSM Health is experiencing the same financial challenges that health systems across the country — and the world — are facing. We’ve continued to invest in supplies and tools needed to respond to the pandemic, while volumes across our four-state health system have decreased by roughly 50%,” the announcement stated.
Kim Sveum, a SSM Health regional spokesperson, declined to provide details on how the furloughs and other measures will affect Monroe Clinic.
In March, to reduce risk of viral spread and prepare for a surge of COVID-19 patients, SSM Health postponed nonemergency elective procedures and non-urgent screenings and wellness visits.
The Wisconsin Hospital Association estimates nonemergency medical procedures account for about 40% to 60% of a hospital’s operating revenue and reports hospitals and clinics statewide have recorded a combined $1 billion decline in revenue since mid-March.
On May 5, Blackhawk Technical College announced it is requiring all full-time, non-faculty staff to take five days of furlough between May 10 and June 30. Staff can take the furlough days consecutively or one at a time. Eligible employees may use earned vacation or personal time to maintain payroll during the furlough.
As part of this cost-saving measure, the college is also expanding use of a shared bank of paid time off to include vacation and personal leave. This allows employees to donate unused vacation time that can be redirected to other employees impacted by the furlough. The bank will also help fund part-time staff who are not fully able to perform their jobs remotely.
“I am proud of Blackhawk employees for coming up with a solution to help their colleagues. It is a creative way to retain our workforce and to help one another during this public health crisis,” Blackhawk Tech President Tracy Pierner said in a statement.
The college closed its four campuses to the public March 18 due to the “Safer at Home” order. The majority of instruction has moved online.
“We have considered many options, but we cannot continue to accommodate staffing levels at 100% while the college remains closed to the public,” Pierner said. “There is a great deal of uncertainty regarding this pandemic and how it will impact college enrollments in the future. As a technical college we will have a role in helping the workforce recover from this pandemic, and we must continue to be strategic with our resources.”
However, the college “remains hopeful about the future,” according to the announcement. It reports enrollment for the summer was down 30% at the start of the pandemic but that gap had closed to 7% by early May and was expected to decrease yet.
