The University of Vermont Health Network is anticipating a $152 million loss in revenue this fiscal year due to the impacts of the coronavirus pandemic, the system announced in a press release Friday.
Since the crisis began, the network has canceled elective procedures, created temporary testing sites, boosted telehealth services and suspended collections — all of which cost "upward of $20 million" through the end of April, according to the press release. The network also saw a $44 million loss in revenue in March alone.
The network is now taking several austerity measures to right the ship. Department directors will take a 5 percent base-pay cut, and vice presidents and other executives will lose 10 percent of their base pay; they will also no longer receive an employer contribution to their retirement benefits. These workers make up 300 of the network's 14,000 employees, the system said in its statement.
The health network is also instituting a hiring and capital spending freeze and will no longer pay performance-based bonuses to leaders or physicians. All of these changes will be in effect through September 30, the end of the fiscal year, and are expected to save about $25 million, the press release said.
“We must confront the harsh financial realities that this situation has had on our organization, which means terribly difficult decisions that have a direct impact on our co-workers and their families," network president and CEO John Brumsted said in a statement. "We will get through this by taking action now to mitigate the long-term impacts of our financial challenges.”
The hospitals plan to resume elective procedures in the coming weeks, which "may be able to make up some ground," the press release said. The network has also landed a $37.9 million federal grant to offset some losses.
“We are fortunate that our public leaders at every level are making bold, tough decisions. Their support and partnership with our Network have been invaluable throughout the pandemic," Brumsted said. "I am confident that as we begin to open up services and address the financial damage, they will continue to provide the support we and other health care providers need right now and in the months ahead.”