ATLANTA — Emory Healthcare, the largest healthcare system in the state, announced it would be cutting hours and furloughing up to 1,500 employees as it faces a $660 million revenue shortfall due to the COVID-19 pandemic, the Atlanta Business Chronicle reported.
The news follows Wellstar Health System’s announcement on May 20 it was forced to furlough more than 1,000 employees as it faces up to $600 million in losses also brought on by the pandemic.
Jonathan S. Lewin, president and CEO of the nonprofit system, said in a written statement that Emory Healthcare expects a $660 million revenue shortfall based on projections through August. The shortfall impacts 11 hospitals and outpatient practices. The reduced hours and furloughs are slated to go into effect June 1 and continue through Aug. 31.
The magnitude in loss in revenue is attributed to cancellation and postponement of the majority of surgery, procedural and diagnostic cases that “far exceeds the $142 million in federal grant receipts,” or CARES Act funding, that Emory Healthcare has received, he said. Congress approved the $175 billion CARES Act to provide relief funds to hospitals and other healthcare providers to cover healthcare-related expenses or lost revenue attributable to Covid-19.
"While never more proud of our team’s response, Covid-19 has had a significant negative impact on our normal revenue and operating expenses, which we must address to ensure a sustained financial recovery throughout our extensive health care system to continue our care and academic missions," Lewin said.