Trinity Health Media Statement
June 28, 2020
Trinity Health addresses COVID-related challenges with changes to Care Sites and System Services
Trinity Health today announced that its health care sites in 22 states and system services will adjust staffing levels and other direct expenses to address decreased revenues caused by the COVID-19 pandemic and to ensure that the health system can serve its communities in the long term.
“Our mission is to be a transforming and healing presence in our communities, and leaders of our hospitals, health services and system office are making painful but necessary decisions to ensure that we can sustain our ministry for the long run,” said Michael A. Slubowski, Trinity Health president and chief executive officer.
“As with most health systems and other industries across the country, we are facing significant pandemic-related challenges. As we ramped up to support inpatients afflicted with COVID-19 and effectively shut down outpatient and elective services during stay-at-home orders, our revenues fell and operational costs increased. While we have received funding from the CARES Act that has helped cover our operating deficits for a few months, it is not enough to sustain us into the future.”
“While there are positive signs that patients are returning for services, the recovery will be slow, and there are many unknowns, with possible resurgence of the virus and the country’s economic recovery. Our health ministries are seeing different rates of return of patient volume in each market we serve. We believe our revenue will be lower than previous levels for at least a few years. In order to align our cost structure with volumes, our leaders are making difficult and painful decisions that impact our colleagues. We are a healing ministry of people caring for people, and we will do our best to support our colleagues facing transitions.”
In the first quarter of fiscal year 2021, which begins July 1, Trinity Health’s national care sites and its system services will reduce positions in mostly non-clinical, administrative functions. Some of the affected colleagues will be among those who were furloughed over the past few months. Staffing decisions will be made in each market and tailored to each community’s resumption of patient volume. Some staffing decisions will be position eliminations, and others will consist of extended furloughs or reduced schedules. All colleagues whose positions are eliminated will be eligible for a paid notice period, outplacement services, severance pay and health and other benefits through their severance period.
Since March 2020, Trinity Health has invested significantly in supplies, equipment, pharmaceuticals, staffing and other needs to ensure colleague and patient safety to address the pandemic. During this time, Trinity Health has also taken several actions to manage expenses through temporary closure of under-utilized services, colleague furloughs and reduced schedules and executive leader compensation reductions.
“We must now focus on what is required to restructure our organization and redesign our services to meet the needs of our patients in the coming months as we continue to live with the presence of COVID-19,” said Slubowski. “I am confident that Trinity Health will emerge from this challenging time as a strong organization. We have a new strategic plan that will enable us to grow existing and new services. We remain committed to our Mission and Core Values, and we will persevere to fulfill the essential health needs of the communities we serve.”