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Adena Health System announces 500 furloughs, projected $50 million deficit in 2020

Adena Health System, which has a hospital in Chillicothe, announced approximately 500 employees will be placed on a temporary furlough amid a projected deficit by the system of more than $50 million through 2020.
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Adena Health System, which has a hospital in Chillicothe, announced approximately 500 employees will be placed on a temporary furlough amid a projected deficit by the system of more than $50 million through 2020.

The hospital system said there are several factors that are affecting its financial situation.

Those factors listed in a news release include unplanned spending to care for patients with COVID-19 symptoms, a lower operating revenue due to no elective procedures, and a decline in emergency department admissions and urgent care visits.

Adena said the temporary furlough will impact nonclinical employees, however a total of 3,000 employees will be affected in some way by the cost-saving measures.

“This is a temporary furlough, not a layoff, meaning caregivers will be able to return to their current position, and will keep their health benefits throughout the period in which they are on furlough, Adena Health System President and CEO Jeff Graham said.

“Individuals are also eligible for unemployment compensation benefits through the Ohio Department of Job and Family Services. Any employee impacted by a furlough during this time is not losing their job and they will return to Adena as quickly as we get through this pandemic and we stabilize as an organization. I want to be clear that Adena will maintain full support of our frontline positions, and this will not impact those areas that provide direct patient care.”

Adena said employees across its nine-county region are affected by the financial decisions.