Essentia Health has started furloughing clinical staff and added another month of leave for the 500 administrative employees that were cut at the start of the month.
"Colleagues in both medical and business roles are having their hours flexed to meet patient volumes and reduced business functions," spokesman Louie St. George III said in a statement. "Physicians and executive leaders are seeing notable reductions in their compensation as well. To reduce costs, we have streamlined and restructured some leadership roles and eliminated others."
Minnesota Nurses Association spokesman Rick Fuentes said Thursday morning the union is negotiating with the health system over staff reductions.
St. Luke's has seen a "dramatic decrease in patient volumes in all clinical areas," CEO Kevin Nokels said in a statement, as elective surgeries have been postponed and nonessential appointments have been moved online or canceled under a state order. As a result, hospital revenue has dried up around the state. The Minnesota Hospital Association predicts state health systems will lose $2.9 billion over the next three months.
"Typically with a significant and extended decline in patient volumes we would immediately reduce staffing," Nokels said. "We are planning for an increase in patients while continuously monitoring patient volumes and needs and are adjusting our staffing as appropriate."
St. Luke's initially cut seven employees and was looking to reduce hours for others.
Neither of the Duluth-based health systems offered a specific number of employee reductions that have been made in recent weeks.
The health system, Duluth's largest employer, publicly announced last month it would put 500 employees on special administrative leave, which will now last through the end of May.
