TRAVERSE CITY — One day after Munson Healthcare officials announced a long-term plan to deal with budget shortfalls due to the pandemic, several managers and administrators have lost their jobs.
Phase 2 of the COVID-19 Recovery Plan for the seven-hospital health care system called for streamlining or doing away with some services, as well as cutting jobs, according to the plan.
The layoffs took place Monday and Tuesday across the entire health care system, said Dianne Michalek, vice president of marketing and corporate communications. She did not provide details on which positions were eliminated or how many people were laid off from each hospital, though she said Munson Medical Center no longer has a chief operating officer.
“These changes were done pretty evenly across the system,” she said.
In all, 250 positions will be eliminated across the entire system, Michalek said. Of those, 25 will be leadership positions of manager and above.
Changes are to take place over the next 12-18 months, according to the announcement made on Monday.
More layoffs will take place this week, while others may occur later in the year depending on the situation, she said.
“Layoffs will be ongoing,” Michalek said. “It’s dependent on the department, it’s dependent on the role, it’s dependent on the transition plan. I don’t have those details.”
A representative from the Traverse City Munson Nurses Association declined to comment on the layoffs as they did not include any nurses.
Munson has 7,500 employees systemwide, according to its website.
Munson lost about $140 million in revenue during the worst of the pandemic from March through June. It also had about $10 million in COVID-19-related expenses. About half of that loss was covered by federal relief funding of $75 million.
While elective surgeries and other tests and procedures that were on hold during the pandemic are now being done again, many hospital areas are not yet functioning at full capacity and are not expected to do so for at least a year.
Phase 1 of the Recovery Plan reduced hours for employees or placed them on furlough, and reduced pay for all vice presidents and above by at least 20 percent, depending on their role. Michalek said no administrators or managers received bonuses this year.