University of Iowa Hospitals Facing $100 Million In Losses
University of Iowa Hospitals and Clinics need to find some ways to save money in the coming months or the effects could be felt by both staff and patients. KCRG reports that UIHC has lost tens of millions of dollars since the beginning of the coronavirus pandemic.
Prior to COVID-19 changing the healthcare landscape, UIHC was on tap for it's most profitable year ever. They were $80 million dollars in the black according to Suresh Gunasekaran, CEO of UIHC. He told KCRG that surplus turned into a $100 million dollar loss because of the pandemic. At the beginning of the pandemic, the number of patients decreased considerably as the state barred non-essential procedures for weeks. Those have since been allowed again. But the hospital has not made up the lost revenue. Gunasekaran told KCRG that if things don't improve, the hospital will continue to lose $20 to $30 million a month.
The bottom line now is that administrators have to find ways to save money. Gunasekaran says that pay cuts are possible. However, he did promise that layoffs would only be used as a last resort. UIHC is far from the only hospital in this situation. KCRG reports that hospitals across the state are having to adjust. Many have had to put workers on furlough.
Administrators say the key right now is getting people to come back to hospitals. Officials say that it could take a year or more to handle the financial impact of the pandemic. Any staff decisions won't happen for at least the next several weeks or months.