GRAND RAPIDS, Mich. (WOOD) —Due to reduced revenue and increased expenses, Spectrum Health announced steps it’s taking to respond to the financial impact of COVID-19.
Spectrum Health said health systems rely on clinic appointments, surgeries and procedures as sources of revenue.
In response to COVID-19 and Gov. Gretchen Whitmer’s executive order, Spectrum Health said it canceled more than half of all non-emergency surgeries and procedures which resulted in the loss of millions of dollars in revenue in just one month.
During the outbreak, Spectrum says it expensive have gone up as well. According to Spectrum, it spent more on personal protective equipment in one month than it would normally spend in one year.
To address the financial issues, Spectrum announced the following actions:
- Matching contributions to employee retirement accounts has stopped from July through the end of the year.
- Tina Freese Decker, the president and CEO, will take a 40% reduction in pay and her team will take a 30% reduction.
- Executives are giving their surplus paid time off to its Close Enough to Care fund to help workers in need of extra PTO.
- In the future, some positions may be terminated. These positions are not roles that care for patients.