Novant Health/UVA Health System Prince William, Haymarket escape cuts, furloughs

Hospitals in Prince William County and Manassas won’t be affected by a new round of cuts and furloughs announced by the UVA Health System.

The healthcare provider announced that it is taking actions to mitigate $85 million per month in losses it has experienced. Those losses come after a state-imposed lockdown and Virginia Gov. Ralph Northam’s ban on elective medical procedures in the wake of the coronavirus.

The two hospitals in our area that are apart of the UVA Health network, however, aren’t’ affected by the cuts.

Chuck Coder, the chief financial officer for Novant Health/UVA Health System tells Potomac Local News in an email statement provided by a hospital spokeswoman:

“Novant Health UVA Health System, formed in 2016, is a partnership between Novant Health and UVA Health. While our regional health system and the communities we serve benefit from having two great parent organizations, we operate independently of both parents. UVA’s announcement does not directly impact Novant Health UVA Health System team members.

Across the country, health systems and hospitals are experiencing record financial losses due to the COVID-19 pandemic. Our health system is no different than other health systems who are experiencing losses of 40-50% of our business. Our health system will continue to make adjustments as needed. Given the evolving nature of this situation and uncertain duration of this health crisis, we choose not to speculate about future adjustments at this time.”

UVA Health, in a press release, provided more information about the dire situation it faces as it decides to cut physician’s hours and to furlough staff:

After considerable engagement with leadership at the highest levels, UVA Health is implementing a series of actions designed to mitigate the financial effects of COVID-19 and safeguard its ability to serve the community. “These decisions were reached only after a great deal of input from leaders across the organization, and are focused on actions we must take now to be able to fulfill our mission,” said Dr. Craig Kent, Executive Vice President for Health Affairs for the University of Virginia.

As Kent outlined in an email message to the organization earlier today, as a result of earlier actions needed to respond to COVID-19, hundreds of inpatient beds have been regularly unoccupied, surgeries have declined by 70%, and clinic visits have been reduced by 90%. The result has been a fall in revenue from clinical care and related services that is producing a deficit of $85 million a month.

“The challenges presented by this crisis are difficult to exaggerate,” wrote Kent. “We have no choice but to take action – now – to stabilize our organization.”

Without the significant changes being put in place, within a few months the health system would not have the necessary funding to carry out its mission of providing high-quality patient care, training health providers and supporting critical research.

The actions being implemented are designed to allow the organization to reduce expenses, adjust and rebuild over the coming months. These include:

• Expense reduction: Leaders are being asked to find savings where possible in medical supplies and pharmacy spending, along with reducing overtime, limiting work with contract staff, and adjusting facility lease commitments. Non-essential travel is being eliminated, and leaders are being asked to reduce discretionary spending.
• Leadership compensation reductions: Kent will reduce his own compensation by 40% through the end of July. In addition, leaders at UVA Medical Center, UVA Physicians Group, the UVA School of Medicine and the UVA School of Nursing will reduce their compensation by 20% through the end of July.
• Physician compensation reduction: Physicians will have a 20% reduction in their total compensation through the end of July.
• Retirement contributions: Retirement contributions will be suspended through the end of July for all UVA Medical Center and non-physician UVA Physicians Group employees.
• Funding for School of Medicine, School of Nursing and Health Sciences Library: UVA Medical Center and UVA Physicians Group patient care revenue helps support the education and research missions of the School of Medicine, School of Nursing and Health Sciences Library. That funding will be reduced by a yet-to-be determined amount this year. Each entity will individually make decisions about potential program changes, salary reductions or furloughs.
• Adjusting hours for patient care staff: Hours for patient care providers at UVA Medical Center and UVA Physicians Group will be adjusted on a shift-by-shift basis based on patient volumes. As patient volumes increase, so too will staffing. Any patient care staff member whose hours are reduced will be able to use their available paid time off. These changes will not affect team members caring for COVID-19 patients.
• Furloughs for some non-patient care staff: Some non-patient care staff at UVA Medical Center and UVA Physicians Group will be furloughed for up to three months. Health, dental and life insurance benefits will be preserved. Any furloughed employee will be able to use their available paid time off. A special team from the UVA School of Law will provide information and resources for unemployment benefits. Those furloughed may also access UVA’s Emergency Assistance Fund for employees.