Henry Mayo Newhall Hospital has terminated nine management-level positions ahead of additional reductions as a result of already low hospital visits projected to continue dropping, according to officials.
According to a recent email from hospital President and CEO Roger E. Seaver to employees, Henry Mayo eliminated nine management employees throughout the organization, effective Friday.
Within the next two weeks, officials said they would communicate with staff about additional reductions, although it was not clear how many more positions will be eliminated.
The decision came as the hospital has seen lower-than-average foot traffic at its Emergency Department since the start of the COVID-19 crisis.
“As has been widely reported, the COVID-19 pandemic has had a significant negative financial impact on every hospital in the country, as a result of sharply reduced surgical volumes and substantially lower emergency department visits. Henry Mayo has not been immune to these same financial pressures,” according to a statement by hospital spokesman Patrick Moody.
Henry Mayo is among a myriad of businesses across the nation that have had to lay off employees due to the pandemic, and while the fight against the virus continues, state and local governments have announced plans to incrementally reopen communities, which include hospitals and their ability to begin scheduling surgeries. Noting that, Henry Mayo officials are looking into returning some services but are mindful that hospital volumes could remain low.
“With government now planning the easing of some restrictions, we are preparing to reopen our service lines. Unfortunately, though, all forecasts predict that hospital utilization will remain very low for the foreseeable future,” said Seaver in his email to staff.
To address the financial challenges caused by present and projected volumes, staffing will be adjusted at Henry Mayo, he added.
Seaver expressed his gratitude for employees’ tireless efforts amid the COVID-19 outbreak.
“I am proud of our Henry Mayo team every day. Our general preparedness and prompt response to the COVID-19 pandemic is truly remarkable. Unfortunately, the social end economic impacts around COVID-19 are extraordinary. I am confident we will get through these financial challenges, grow our patient census again and continue our important services to our community,” he said.