April 15, 2020
Amid COVID-19 pandemic, MultiCare announces new financial measures to ensure long-term stability
Editor’s note: The financial figures in this release for April and May were projections and have changed. For updated figures, please read our most recent press release about the work being done to return our organization to financial health.
MultiCare Health System announced today several measures to help protect the organization’s long-term health and capacity to fulfill its mission amid financial losses as a result of the COVID-19 pandemic.
MultiCare, like other health systems, has seen a decline in volumes — both inpatient and outpatient — as the organization has paused non-emergent surgeries and procedures and patients have avoided health care services.
Though MultiCare’s focus these last weeks and months has been on the health care side of COVID-19, the organization is not immune to the societal and economic repercussions this pandemic has had. MultiCare’s operating margin for March was a loss of $34 million and it is projecting losses in excess of $75 million for both April and May.
The extraordinary impact this situation has had on the organization’s operations has required it to implement a number of measures to ensure long-term financial health. Those measures include:
- Implementing executive compensation reductions.
President and CEO Bill Robertson will take a 41 percent reduction in his compensation. In addition, Senior Vice Presidents and Executive Vice Presidents will see a 32 percent compensation cut, and Vice Presidents, a 25 percent compensation cut. These reductions are effective with the pay period beginning April 12. - Deferring hiring for some roles.
- Introducing a voluntary furlough program for employees.
Employees may volunteer for one-week increments. Employees may utilize accrued paid time off for the week, if available. - Eliminating training, travel and conference fees.
- Discontinuation of the special program to protect pay and benefits.
The program to protect team members’ pay and benefits, which began on March 15 and extends through April 25, will end with the pay period beginning April 26.
MultiCare plans to review these measures on a monthly basis as the organization’s financial picture continues to evolve.
Bill Robertson, CEO of MultiCare said, “While difficult, these are necessary steps for us to take now, so that our organization remains capable of providing the necessary health care services that our patients and communities need and deserve. In the near-term, they will enable us to emerge from this current situation as a viable and vibrant organization that is prepared for the new realities of a changed world.”
He added, “We continue to thank our excellent employees for the incredible work they’ve done over these last weeks and months, and for the work they have always done to help take care of our patients and our communities.”