Sonoma Valley Hospital employees not directly involved in patient care could lose up to 20 percent of their paycheck under a new furlough plan, officials have announced.
Under the furlough plan, which went into effect Dec. 13, all administration staff will reduce their time by 20 percent. Work reductions for other staff will range between 10-20 percent. Employee insurance benefits will be maintained at current levels.
The move, forced by a severe cash shortage, will not affect patient health or other critical activities, according to Chief Medical Executive Dr. Robert Cohen.
“I would like the community to know that these furloughs apply to people who are not involved in direct patient care,” said Cohen in a statement. “This will not affect the direct care we provide to our patients.”
The hospital quoted three reasons for its cash flow problem. First, revenues from outpatient surgical and special procedures have been lower than expected; second, the state continues to delay MediCal reimbursement payments; and expenses for anesthesiology services have not been offset by additional surgical revenue.
The hospital does not expect to see a significant increase in revenue until May 2010.
The furloughs apply to employees who are not providing direct services to patients, providing support to customers, engaged in critical actions to increase revenues, or ensuring proper and timely collection for billed services.
Cohen said the furlough policy will be evaluated continuously during the next 90 days. “Should we have an improvement in cash flow, the furloughs could be rescinded.”
Chief Executive Officer Carl Gerlach noted that department managers have already begun implementing other initiatives to trim expenses and increase revenues, but those efforts will take several months to show significant results.
“Sadly, it is a sign of the times. Healthcare is not immune to a poor economy,” said Medical Imaging Manager Jackie Lyons. “It is unfortunate that we find ourselves in this predicament in the middle of the holiday season. That being said, we will still continue to take good care of our patients during these lean times.”
Cohen added, “I have confidence that we’re going to come out of this on the other side as a stronger institution.”
