Murray-Calloway County Hospital announces plans for furlough due to the unprecedented effects of the coronavirus. The actions follow the suspensions of some services and rescheduling of elective surgeries and procedures, which make up the bulk of revenues to support operating costs at the hospital.
Expense reductions varying by department from at least 15% – 30% will affect employees across the board. Jerry Penner, CEO at MCCH is setting the example by already taking two pay periods with no pay as a part of the temporary layoffs. All management positions will take a minimum 20% reduction. Staff furloughs will involve reduced work schedules, while others will relieve employees of all job duties. Any furloughed employees are eligible for unemployment compensation, and they will remain eligible for their medical benefits.
Murray-Calloway County Hospital has nearly 1,100 people on their team. Many staff and departments have already been flexing hours and several employees are on unemployment to offset low volumes. This however is not enough to counteract the anticipated $5.3 million dollar reduction in net revenues during the month of April. Stimulus funding received through the CARES act will offset $2.3 million of the $5.3 million shortfall.
“We do not know when we will come out of this shutdown but our intent is to return to normal operations as soon as possible. This is just a temporary measure,” said MCCH CEO, Jerry Penner. “We have delayed this action as long possible because we value our employees and need to ensure we will be here when our communities need us most.”
“Hospitals, like MCCH, will require additional financial assistance to overcome shutdowns mandated by the government. These shutdowns were necessary but just like our local businesses, we’ll need assistance coming out of the crisis to secure our financial future.”
“We don’t want any patients or community members to perceive that they need to avoid or delay necessary care,” he said. “We don’t want folks to be fearful of coming to the hospital. We are continuing to provide urgent and emergency healthcare and surgery services throughout our hospital and physician clinics.”
Murray-Calloway County Hospital is a 152-licensed bed medical center located at 803 Poplar Street in Murray, Kentucky. The hospital has been serving the medical and health care needs of the Western Kentucky area for over 100 years. Murray Hospital specializes in such major areas as women’s services, surgery, cancer, orthopedics, neurology, psychiatric services, emergency services, Spring Creek, and more. Murray-Calloway County Hospital is accredited by the Joint Commission on the Accreditation of Healthcare Organizations, the nation’s oldest and largest hospital accreditation agency.