The Coronavirus is taking a big bite out of the Beaumont Health system.
Beaumont says it will temporarily lay off 2,475 employees and permanently eliminate 450 jobs.
Beaumont says layoffs are mostly hospital administrative staff and others who are not directly caring for patients.
Beaumont suffered significant losses during the first quarter. Nearly all inpatient and outpatient surgeries and other medical services not related to COVID-19 were halted.
A statement from John Fox, the CEO, says
“I am extremely proud of our team’s rapid response to COVID-19. While many front-line employees have never been busier, other parts of our operations have drastically declined or ceased. We must make difficult, quick decisions now to protect and readjust to an uncertain future. We also expect economic pressures on Beaumont and the health care industry to continue well after the COVID-19 initial surge subsides, which is why we made the difficult decision to eliminate 450 positions. We must adjust the way we operate our organization moving forward. This pandemic has changed the delivery of health care, and we will be treating patients with this virus until we get a vaccine.”
The system says those whose jobs have been eliminated will receive a lump sum severance package and can continue their benefits through their severance period.
Impacted employees will be eligible to apply for other open positions at Beaumont and given priority.
Fox says he is taking a temporary 70 percent pay cut. Other executives will take temporary 45 percent cuts in total compensation.