Mercy announces pay-cuts and furloughs in response to the pandemic

Local News

SPRINGFIELD, Mo.– Mercy announces that their employees will be taking pay-cuts and furloughs due to the pandemic.

The pay-cuts and furloughs will impact all Mercy employees at all facilities through July.

Dave Dillon with the Missouri Hospital Association says the numbers show it’s no surprise mercy has had to find ways to cut costs. He says staffing alone makes up about half the cost of running a hospital.

“Hospital inpatient care is down 40%, and outpatient care is down 60%,” Dillon said. “When you aggregate that as a state, hospitals are losing 32 million dollars per day.”

Mercy provided KOLR10 the following statement:

“Like other health care systems across the country, Mercy is taking difficult steps to address the heavy economic consequences of the COVID-19 crisis. Starting next week and through the end of July as needed, we will begin furloughing co-workers across Mercy’s four-state service area. Health insurance will be continued throughout the furlough period, and an additional 80 hours of pay may be provided through Mercy’s crisis PTO fund. Mercy is also eliminating positions at every level of the organization, impacting every department and every community we serve. In doing so, we will provide severance packages to help care for our co-workers and their families. At this time, Mercy is unable to provide numbers as we are still working to keep as many co-workers employed as possible.

In addition to these measures, all leaders will earn up to 26% less this year than last, with the most significant reductions at the senior level. For all co-workers, 401k/403b service contributions and matches will not be made for 2020 and annual merit increases may be delayed, as well. No one will be hired into open positions for the foreseeable future without approval of Mercy’s senior leadership.

Our hearts go out to those impacted by these changes and the unprecedented impact of this global pandemic.

Mercy also announced Friday, May 8, a three-phase plan to bring back all levels of care in the coming weeks.

Mercy to gradually reactivate services previously postponed

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