Manassas City Councilman Ian Lovejoy will lead a crowd barhopping through Downtown Manassas at midnight.

He’s hosting the event in honor of the first phase of reopenings of Northern Virginia beginning at midnight tonight, as restaurants in the city will be allowed to reopen with outdoor seating, at 50% capacity for the first time since being largely shuttered at the onset of the coronavirus pandemic in March.

“Technically we enter Phase One at 12:01,” Lovejoy said.

He noted a lot of restaurants were open that late anyway back in the “good old days.” Many restaurant owners told him they plan to have their establishments open when the clock strikes midnight.

As Northern Virginia enters the first phase of the reopening plan, there will continue to be a ban on social gatherings of more than 10 people, and those familiar six-feet social distancing recommendations are still in place.

Office workers are still encouraged to telework and, starting tomorrow, everyone will be required to wear facemasks in all public buildings and private businesses, under Gov. Ralph Northam’s latest executive order.

Retail stores will also be allowed to operate at 50% occupancy, and hair salons and barbershops will open again. Fitness centers may offer outdoor exercise services, and campgrounds may also begin taking reservations for short-term stays.

For churches, the number of people who will be allowed to attend an in-door service will increase from a limit of 10 people to 50% of the capacity of the church building.

Lovejoy, a Republican who is seeking re-election to his seat in November, said he thinks the event will be quite well attended. The bar crawlers will meet at Sinistral Brewing Company, located at 9419 Main Street in Downtown Manassas and then, according to the Facebook event page, they will patronize any other business that happens to be open.

Sinistral Brewing Company, Philadelphia Tavern, Crossroads Public House, and 3 Monkeys will all be participating. ” Lovejoy said.

As for social distancing and mask-wearing with the bar crawlers, Lovejoy said, “I don’t think it’s going to be a problem because this is about supporting our businesses,” Lovejoy said, noting that people will want to follow businesses rules.

Lovejoy also noted that you’re not required to wear a mask while eating and drinking or outdoors if doing proper social distancing, so, theoretically, you won’t see a patio filled with people wearing masks.

The mask-wearing probably mostly applies to retail stores, he adds.

Lovejoy also said that police are not going to be enforcing the mask rules, and if it’s enforced at all it will be done through the Virginia Department of Health.

“I plan to wear a mask,” Lovejoy said.

The Manassas City Council voted unanimously on Monday, May 18 to close streets to help restaurant owners as they move into Phase 1 of the reopening of the City.

Gov. Ralph Northam today announced Manassas, along with surrounding jurisdictions to include Fairfax and Prince William counties, and Manassas Park, will enter the first phase of the governor’s reopening plan on Friday, May 29, following his stay-at-home order in March prompted by the coronavirus pandemic.

Businesses in jurisdictions further south, like Stafford County and Fredericksburg were allowed to reopen on May 15.

Under the city council’s vote, the city manager can now temporarily convert streets, on-street parking, and sidewalks to additional outdoor space for local businesses.

 “This would permit the city to work with local restaurants and retail establishments to utilize additional outdoor space in order to comply with the Governor of Virginia’s order regarding a phased reopening due to the Covid-19 pandemic,” read the city ordinance.

Closing the streets could prevent easy access off Route 28 into the parking deck, according to City Manager Pat Pete. In the past, the streets have been shut down during First Fridays and other events.

“We’re going to be as flexible as we can to help businesses open up and become profitable,” Pate said.

There are still Virginia Alcoholic Beverage Control Authority restrictions, but according to Community Development Director Liz Via-Gossman the big relaxation is that space doesn’t have to be exactly contiguous as long as it’s within 100 feet. This is for the pandemic only.

Parking lots or even the Harris Pavilion could be used for outdoor seating, Via-Gossman explained.

This ordinance does not apply only to downtown Manassas restaurants. Restaurants that are in shopping centers would have to check with their landlords, though.

The use of private spaces does not require action by the city council. It only requires the zoning administrator’s signature.

Retail and restaurants would be able to apply for expanding into parking lots and two restaurants have already inquired into this, Via-Gossman said.

On Monday night’s Manassas City Council meeting, Assistant Development Director Nicole Smith addressed elected leaders with an update on what the Economic Development Department is doing to help city businesses.

On May 29, Northern Virignia, to include Prince William County and the cities of Manassas and Manassas Park, are poised to enter the first phase of a reopening plan laid out by Virginia Gov. Ralph Northam that would allow restaurants to begin offering outside dining, operating at 50% capacity.

Ultimately, the decision to allow the city to reopen will be made by the governor who, on Friday, hinted at issuing a mandatory policy that would require all Virginians to wear facemasks. An announcement on his plan is expected on Tuesday, May 26.

Today, the governor declined requests from the Prince William Board of County Supervisors and the Manassas City Council, which asked to allow restaurants with outside dining to reopen at 50% capacity for the Memorial Day Weekend.

“We are in frequent communication with leaders in those localities, and will have more information next week,” said Northam.

In the meantime, restaurants may still continue to fill take-out orders while their dining areas remain shuttered. Stafford County and points south (with the exception of Richmond City and Accomack County on the Eastern Shore) entered the first phase of reopening a week ago.

As the city readies to welcome back shoppers and diners to its downtown shops later this month, Smith explained that the Department has been targeting likes on Facebook to make sure their message is getting out in a timely manner. They have placed ads on Facebook so people know that there are opportunities for them.

Smith said that their enhanced marketing efforts came to about $30,000 in their existing resources. According to their marketing firm, they saw a doubling of their followers and likes.

None of the city’s advertising budget has been spent on local media or marketing firms. Since the start of the pandemic, as businesses were forced to close and the advertising that supports publications dries up, local news outlets like Insidenova and Prince William Times have resorted to posting messages on their websites, asking readers to voluntarily chip-in to keep local news coming.

According to an email from Patrick Small, Manassas’s Economic Development Director, “All of our Department advertising funds are expended using primarily [Facebook] and Google.”

Manassas ended an advertising agreement with Potomac Local News in July 2019. Potomac Local News launched a paid reader subscription program in 2018 to help offset the effects of declining advertising revenues.

Smith also noted that they did a business survey with over a hundred responses from businesses across the city.

According to the city website:

On March 26, in the early days of the pandemic, the City put out a survey to gauge the impacts of COVID-19 so we could develop a strategic approach to dealing with the crisis. Here are a few of the findings from that survey (126 respondents) most of which were small businesses in the retail, food service, and health and medical service industries:

Over 80% reported that COVID-19 social distancing measures have been “very to extremely disruptive” to their business.

Nearly three quarters have experienced a loss in revenue of 50% or more.

Half of respondents said they have laid off employees or are considering doing so in the near future.

Smith added that the Department worked with the Prince William Chamber of Commerce to lobby state and federal officials to help a small business that was having a hard time qualifying for a program.

Smith said one of the silver linings from the crisis is that they have seen so much good in Manassas, and they want to focus on hope.

The Department is rolling out a hashtag they are hoping to use that focuses on hope, #ManassasStrong. The Department will also be making window clings that say “Stronger Together! We’re Glad You’re Back!” for offices, stores, and the fire department and put them up on windows across the city.

Vice Mayor Pamela Sebesky asked how much effort there had been done to businesses outside of Downtown Manassas. Economic Development Director Patrick Small said he had heard from people that it looked like their marketing emphasized Historic Downtown.

Patrick Small explained that very little of their marketing was downtown specific with the exception of the rent relief program that HMI was able to taken advantage because they were a Main Street community, and the 15-minute parking – none of it was downtown specific.

“We have not told people to come to downtown,” Small said, “Now I think downtown has built up in this community a tremendous amount of goodwill – over the past number of years, and I think they’re reaping the rewards of that goodwill. People are spending money in downtown, perhaps more than they are around the rest of the city, but I think that’s that sense of community that Nicole spoke about. But our residents are reaching out, they are supporting businesses city-wide.”

“I think that’s going to blunt some of the damage that is still going to be done, but may not hit this community as hard as it hits others,” Small said.

Sebesky also asked about mask usage and efforts for safety being put in place by businesses. Small said that as they start to reopen they will be publishing resources on their website.

“The information that we’re given that is relevant to these businesses, we are going to push out.” Small said that whereas before they were posting information about where to get help, now they will be sharing information on how to re-open safely and how consumers can interact with businesses safely. Sebesky said she mentioned this because of talking to other elected officials who want to emphasize mask-wearing and there is a conversation in Northern Virginia about wanting to see large scale efforts as part of the re-opening in Northern Virginia. “Our business owners have that concern as well,” Small said. “The businesses are very cognizant that they may lose people who come in if their servers aren’t wearing masks in restaurants.”

Small added, “I think we should give them a lot of credit, they’re thinking about these things.

Manassas residents will see higher tax bills in the coming year.

The Manassas City Council on Monday approved its annual $253 million budget that will be funded by a $1.46 per $100 of the assessed property value Real Estate tax.

The rate is two cents lower than last year’s rate, however, due to a nearly 7% increase assessed property values in the city, the average resident will see a $4,295 property tax bill — about $220 more than the previous year.

The higher tax bills mean city residents will shell out more cash to city hall as the city unemployment rate skyrocketed to 13%, up 10 and a half points since the coronavirus pandemic began eight weeks ago.

City Council member Mark Wolfe joined the meeting remotely and made the motion for a $1.46 tax rate. Vice Mayor Pamela Sebesky seconded the motion.

The tax increase passed 4-2, with Councilman Ian Lovejoy and Councilwoman Theresa Coates Ellis voting no.

Sebekesy added a friendly amendment to the budget, which would incorporate a quarterly review of the budget to ensure sound stewardship of the money being used to cover pay staff raises if priority allows, as well as funding three new full-time firefighters, and dedicated funds for a $6.4 million project to replace Dean School and improve the adjacent Dean Memorial Park.

The city joins neighboring Prince William County which also hiked property tax bills when it passed its annual budget last month. Nearby Stafford County passed a flat tax, setting the below the previous year’s rate, and cut county government services, to ensure its residents aren’t hit with a higher tax bill over the next year.

Manassas City Council member Theresa Coates Ellis voiced her displeasure before the vote, saying that council members had been “bombarded” by emails, the majority of which were not in favor of a higher tax rate.

 “Our community is struggling right now, we’re in crisis,” Ellis said. “I feel like this is not the time to do this.”

Councilmember Ralph Smith addressed a phone call that received accusing him of following the lead of fellow Democrats on the council Wolfe and Sebesky told him to do when it comes to approving the tax hike.

“My decision on the motion will be my decision on this motion,” said Smith.

Mayor Hal Parrish II added that he has known Smith for many years and has thought Smith was his “own man” and will make the decisions that he thinks are right.

Councilmember Michelle Davis-Younger said that the budget is the hardest thing she has had to do on council.

“Budget season is already difficult and you throw in a pandemic,” Davis-Younger said.

Both Davis-Younger and Coates Ellis are vying to replace Parrish as mayor in the November General Election. Parrish announced his retirement earlier this year.

Davis-Younger said the tax rate will ensure the financial future of the city.

Sebesky added that the average tax bill will be a 2.47% increase, claiming it will be the lowest tax increase this year among Northern Virginia localities.

Residents will receive their higher tax bills in uncertain times as more than 500,000 Virginians, statewide, have applied for unemployment since the pandemic began.

The city has been scrambling in recent weeks to accommodate small business owners who have seen revenues plummet due to a state-imposed lockdown that turned the city’s once-vibrant downtown a virtual ghost town, with special parking spaces that allow people purchasing take out from downtown restaurants to park their cars in special reserved parking spaces. It’s also postponed the collection of meals taxes from city restaurants for the month of March, April, and May, until June.

The city is also awaiting federal bailout money as part of the CARES Act, passed in late February by Congress to help citizens and localities in the wake of the coronavirus spread. The city’s school division received $1 million in CARES Act funding and must decide how it will spend it.

The high unemployment levels in the city, not seen since The Great Depression of the 1930s, come on the heels of a banner economic year for the city, which saw the relocation and expansion of multiple businesses in the city.

The new budget takes effect on July 1.

The unemployment rate in Manassas has skyrocketed to 13% in the midst of the coronavirus pandemic, and long-awaited stimulus money from the Federal Government has yet to arrive.

In January and February, the city’s unemployment rates were 2.8% and 2.5%, respectively, according to the Virginia Employment Commission. The city had just come off a “banner year,” with new businesses opening and existing businesses expanding or relocating to the city.

“For the filing week ending May 2, the figure for seasonally unadjusted initial claims in Virginia was 59,631. The latest claims figure was a decrease of 12,857 claimants from the previous week. Though the 17.7% decline indicates that the volume of initial claims has retreated from its recent peak, it may not return to pre-pandemic levels for some time,” the Virignia Employment Commssion states in a press release.

Unemployment numbers have not been this high since the Great Depression of the 1930s.

According to Patrick Small, Economic Development Director for the Manassas City, the businesses that have been hurt the hardest are the mom-and-pop shops.

“Small businesses generally and restaurant, retail and personal services specifically.  It is going to take a return to normalcy so they can resume operations for them to recover.  Businesses need customers and sales,” Small said.

As of May 7, the city of Manassas has 332 total coronavirus cases, with 38 hospitalized, and one death. The city’s death count was revised from two because the Prince William Health District had incorrectly classified a death to Manassas when it was really in Prince William County, said city spokeswoman Patty Prince.

In response to the staggering unemployment rate, city leaders have discussed a possible federal economic bailout that could come by way of the CARES Act, (The Coronavirus Aid, Relief, and Economic Security (CARES), which was passed by Congress and signed into law by President Trump on March 27.

According to the Treasury Government’s website, “Through the Coronavirus Relief Fund, the CARES Act provides for payments to state, local, and tribal governments navigating the impact of the COVID-19 outbreak.”

According to Small, the money from the CARES Act has not been distributed yet to the city government. The city school division, however, received $1 million in CARES funding and now leaders there must figure out how they’re going to spend it.

In the meantime, Small said, “other Federal programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Emergency Advance (EIDL) have been a boon to many local businesses, as have unemployment insurance funds that have been made available to people who have lost their jobs; including the self-employed.

The U.S. Small Business Administration (SBA) and America’s Small Business Development Center (SBDC) have been of particular help to local businesses,” adds Small.

When city government does it CARES money, none of the cash may be used to make up for lost money that the city would have collected through sales tax revenue had the state not shut down due to the coronavirus pandemic, explained Manassas City Manager Patrick “Pat” Pate.

The CARES money can only go to cover the costs of coronavirus-related expenditures. City leaders aren’t sure yet if they will receive a check from the Federal Government, or if they will have to reimburse the money after they pay out-of-pocket for a mounting number of expenses.

So far, the city government has spent  $142,000 on personal protective gear, cleaning, and other hard costs associated with the coronavirus fight.

Fewer calls for help

Pate said that city operations are working the same way they have over the last several weeks, with ongoing activity despite closed buildings, garbage is picked up, and 911 calls being answered – although Pate said they are seeing less of both police and fire and rescue calls.

The number of fire and rescue calls placed to the city’s 911 office is down since the beginning of March. The city’s fire and rescue crews are running about three coronavirus-related calls per day.

On top of that, fewer people are calling for police help during the pandemic. The city has seen a 20% drop in calls from people needing the assistance of police officers.

Pate said that the city is in contestant contact with the hospital that serves the city, Novant Health/UVA Prince William Medical Center.

“If you have an emergency like a heart attack or stroke, come to the hospital and do not wait until it has progressed too long,” Pate urged residents.

Based on the information from the hospital, Pate said that those who choose to make a hospital emergency room are in a “lot worse shape now” because they waited too long to come in.

Pate said the hospital has personal protective equipment and they are separating people, so residents should not be afraid to come in and not wait until it’s too late.

It’s looking like Manassas City will have a female mayor for the first time in its 147-year history.

Mayor Hal Parrish II announced his retirement at a small gathering at Okras restaurant in Downtown Manassas in February. It came as a surprise to many, as he’s served as mayor since 2008, and has been on the city council since 1993.

As Parrish departs, he’s leaving the city in a similar economic climate that mirrors the financial crisis of 2008, when he won his mayoral job. After a banner economic year for the city, unemployment in the city has skyrocketed to 13% — levels seen during the Great Depression of the 1930s — following the pandemic.

Now, two businesswomen with ties to the community are facing off for the mayoral seat. Potomac Local News recently spoke to both candidates about their visions for Manassas.

Michelle Davis-Younger, a life-long Manassas resident, has been on Manassas City Council since November 2018. She’s the presumptive Democratic nominee.

“It’s been great,” Davis-Younger said.

Bringing in business and new development to the city are some of her goals, Davis-Younger said.

“We want to grow,” Davis-Younger reiterated.

Keeping taxes level and not raising them is also a priority for her.

“I’ve been touted as a bridge builder,” Davis- Younger said she’s known for bridging the political divide on the city council.

Davis-Younger owns a human resources consulting business. A lot of her work involves “talking it out, getting people to the table to talk through things,” she said. She adds those skills go hand in hand with working on the city council.

She also helps her clients with resume writing and job- interview preparation. Davis-Younger added that when people are working outside the current pandemic, “that, hopefully, more money is being spent in my city,” and “When mom and dad are working everyone’s eating and working, it makes for a better city.”

Davis-Younger, a single mother, took night classes at Strayer University while working full-time, eventually going on to get her MBA.

She started her human resources firm as a side business in 1996, but now it’s her full-time job. Her company, “The1ForHR,” is now located in Downtown Manassas.

Now married, Davis-Younger and her husband, James, and her 15-year=old daughter who attends Osbourn High School. All three Two of her children attended Manassas schools, she adds.

Theresa Coates Ellis, the presumptive Republican candidate for mayor, is also a local business owner with a strong desire to take charge.

“I am ready to lead,” Coates Ellis said.

Coates Ellis has forged multiple strategic partnerships in the city, which includes her Shadow for a Day” program that helps students and small and large businesses connect for mentorship.  These types of outreach programs are important aspects of being a mayor, she said.

Coates Ellis has also made it a point to bring together the city council and the leaders of homeowners associations to discuss community issues.

Coates Ellis is also the Patron of the Bee City USA – which is a way to get the city involved in sustainable living, native plants, and attracting pollinators. She and her husband Goerge spend hours working with bees.

“It’s a good way to brand our city,” Ellis said.

Ellis, who won her first seat on the city council in 2018, said that she had expected Mayor Hal Parrish II to run again, but had planned on running if he didn’t.

“I’ve been mentoring with him,” Ellis said.

Ellis, an entrepreneur, believes that her experience with her Manassas-based company Tackle Management and Marketing has prepared her for the mayoral role. The firm works with small and mid-sized businesses helping them with marketing and creative projects.

“I’m a big connector, I’m very interactive,” Ellis said.

Ellis has been a resident of the city for 30 years.

Ellis said that she is very focused on growing the city’s economic development and ways to move the city forward for the whole community. The city is coming off its largest economic boom in history,

In her experience with marketing, she has done work with many different industries, but mostly healthcare, Ellis said, so she understands citizen’s issues with high deductibles, Medicare, Medicaid, and mental health crisis.

Ellis is also concerned about the coronavirus pandemic and its effect on the city. coronavirus outbreak, Unemployment has skyrocketed to 13% in the city since the start of the outbreak, and Ellis supports the city furnishing gift cards to area businesses that remain open during a statewide shutdown meant to curb the spread of the disease.

Since 1965, only Republicans have been elected mayor in Manassas. Prior to that, the city did not keep political party records.

Mayor Harry J. Parrish served in office from 1965 to 1982 and his son, Mayor Harry J. Parrish II, who is now retiring, has served on the city council starting in 1993, and as mayor from 2008 to 2020.

Voters will head to the polls on Tuesday, November 3.

Manassas leaders are asking themselves if they can do more when it comes to bailing out business owners affected by the coronavirus pandemic.

At a city council meeting Tuesday night, leaders suggested taping the city’s $18 million rainy day fund in order to provide relief to businesses. The reserve represents 15% of the city’s general revenue budget and is to be used for emergencies.

The discussion comes as the city has already done things such as provide $60,000 in grant funding, as well as designate special parking spaces for restaurant customers picking up carry-out orders.

“As far as something broader for the community, we have not discussed what that would be, other than delayed some tax payments…”, Pate said.

Nearby Fairfax County got $5.2 million in CARES Act funding. Pate warned the council that if it establishes and funds a relief program now, it cannot use CARES Act funds to restore city coffers later. It’s prudent to wait to see what the city might get before acting, Pate added.

Manassas residents are facing a Real Estate tax increase as leaders hammer out the city’s annual budget.

But the question of what the city should do more, as some councilmembers’ suggest, is largely tied to how much federal stimulus money the city might get from the CARES Act, established in the wake of the coronavirus pandemic.

In the wake of the coronavirus shutdown, the city is bracing for millions in revenue losses. It’s now clear that the coronavirus will continue to leave its mark on the city and its finances for the next few months, at least.

“Our revenue numbers are going to be impacted…,” Pate said.

However, things are looking up for the city’s school division, as it has received a $1 million CARES Act funding.

The uncertainty comes as city leaders try to hammer out a budget for the Fiscal Year 2021, which begins July 1. A proposed $1.44 tax rate on every $100 of assessed property value used to fund the budget is needed if the city is to maintain existing services and planned raises for employees.

At that rate, the budget would not include for proposed projects like a new school, library, or talked about enhancements to restore the historic Annaburg Manor home that dates back to 1892, now a city public park. Pate said he left out those items from the proposed budget based on the direction he receives from the city council during an organizational meeting held earlier this year.

If the council wants to do more, they will need to raise the tax rate, Pate said. The proposed $1.44 tax rate would mean taxpayers would receive an average Real Estate property tax bill of $4,405 up, up about $110 from last year. While the proposed $1.44 rate is lower than last year’s adopted $1.48 rate, increased property assessments mean residents will pay more if the council chooses not to adopt a lower tax rate.

The City Council is expected to approve the budget Monday, May 11.

A candidate for Manassas City Council teamed up with Miss Virginia to bring hot meals to a city trailer park.

Miss Virginia United States 2020 Katelyn Page joined Helen Zurita, a community activist turned city council candidate, at the East End Mobile Home Park on Route 28 where they donated 150 hot meals to residents.

“Currently I have a list of 400 families who are in need of food. Thanks to the Prince William Food Rescue, and Bombay Cafe in Fairfax, I am able to help meet their needs,” said Zurita.

Zurita says Miss Virginia contacted her and wanted to help.

“Miss Virginia, Katelyn Page, reached out to me and quickly sprung into action with a food drive,” states Zurita.

Two years ago, residents in the mobile home park were facing eviction after the city cited the owners of the park for failing to fix a leaking sanitary sewer that was leaching sewage into the public water system. When Catholic Charities stepped in to but the property after the previous owner refused to repair the system, the trailer park was spared and residents kept their homes.

Zurita also used the food donation event to speak about her candidacy for the Manassas City Council. She works for a hotel and has seen her working hours reduced in the wake of the coronavirus spread.

“I’m probably the poorest candidate,” Zurita said. “I am down to 32 hours a week right now,” Zurita said.

She called attention to the more than 500,000 Virginians who have filed for unemployment in the past six weeks due to the viral outbreak.

“I have to be the voice for the voiceless. There’s too many people out here that are being hurt,” Zurita said.

Zurita has lived in Manassas for over 15 years and has three children. She faces a four-way Democratic Primary Election on May 19 June 23 with two other incumbents, Pamela Sebesky, and Mark Wolfe, and political newcomer Tom Oscina.

There are three open council seats and the mayor’s seat up for grabs in the November General Election.

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.