Providence Imposes Budget Cuts Because Of Virus

By Kristian Foden-Vencil (OPB)
Portland, Ore. May 13, 2020 12:11 a.m.

Providence Health & Services in Oregon has announced a series of cuts because of the COVID-19 pandemic.

Providence said all executives will take a pay cut of between 5% and 50%. Some will also have to take a week off — unpaid — between now and the end of July.

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A health system statement said caregivers in non-patient-facing roles, will work reduced hours because of the low volume of patients.

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“We are planning for a new normal to ensure financial stability in the months ahead,” said chief executive, Lisa Vance. “We are doing all we can to ensure the highest safety precautions are in place for all of our services as we reach out to patients to ensure they do not delay needed care.”

All Providence departments will face cuts so workloads fit the volume of patients. The health system has put a hold on almost all hiring and is reducing all non-essential spending.

Several Oregon health systems, including Legacy and Oregon Health and Science University, have announced similar cuts as people continue to stay away from hospitals because of the coronavirus.

Oregon Gov. Kate Brown banned all elective procedures in March when the virus first started making Americans sick. That ban has now been lifted but patients have been slow to return.

The federal CARES Act includes money for hospitals. But Oregon hospitals receive less than some states because the state has a higher percentage of Medicare Advantage patients.

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