Health-system workers across South Dakota are facing temporary layoffs or hours reductions.
Avera Health in Sioux Falls said it’s furloughing 650 employees and reducing the hours of 1,500 employees. The organization employs 19,000 people across a five-state region.
Monument Health in Rapid City is furloughing 200 employees and reducing the hours of an undisclosed number of other employees. Monument Health employs 4,500 people across western South Dakota and eastern Wyoming.
Avera and Monument both said they’re also temporarily reducing executive pay.
A spokesman for Sanford Health in Sioux Falls said the health system has not imposed furloughs but is adjusting the hours of clinical staff in areas not related to COVID-19.
Health systems have cut back on normal activities, including elective surgeries, to focus on COVID-19. That’s resulted in declining revenue. Monument Health President and CEO Paulette Davidson said in a memo to employees that revenue is down 30 percent.
Avera issued a news release quoting President and CEO Bob Sutton.
“This is not a decision we wanted to make or one we take lightly,” Sutton said. “We had to take immediate action to ensure we can sustain our clinical operations during the surge and after the surge ends.”
Gov. Kristi Noem addressed the furloughs and hours reductions Monday during her daily coronavirus press conference.
“I am concerned about it, and I think it can be largely attributed to the fact that there’s no elective procedures going on right now, to preserve the personal protective equipment that we need to fight the virus,” Noem said.
Noem also said there is money in congressional coronavirus legislation for hospitals, but guidance is lacking about how the money can be used. She said there may be negotiations under way about that guidance as Congress considers another coronavirus bill that reportedly includes more money for hospitals.