GRAND RAPIDS, Mich. (WOOD) — Oaklawn Hospital in Marshall is laying off workers and implementing pay cuts because measures to slow the spread of coronavirus have limited operations.
Just short of 200 of the hospital’s about 1,150 employees are being laid off. CEO Gregg Beeg told News 8 that all departments are being affected, but most of the workers are nonemergency personnel.
Additionally, hourly employees are getting a 5% pay cut, salaried employees a 10% pay cut and upper management, including Beeg, are taking a 20% pay cut.
Beeg said the cuts are needed to keep the hospital running, noting that it has lost 60% of its revenue because all nonemergency care and procedures have been suspended.
“Taking these steps now will ensure we can continue to deliver the best, safest quality care while remaining financially viable during these turbulent times and can recover as quickly as possible beyond,” he said in a statement.
Workers were informed of the layoffs Wednesday. They are currently expected to continue through May, but that could change based on how the pandemic plays out. The goal is to bring everyone back when things get back to normal.
Oaklawn isn’t the only hospital making these kinds of decisions. Last week, Mercy Health and Stain Joseph Mercy Health System announced 10% of employees would be furloughed because of the coronavirus limitations.