Financial Challenges Force Changes at Michigan Medicine

Michigan Medicine

Over 700 positions at Michigan Medicine to be eliminated in pandemic’s wake

Ann Arbor-based Michigan Medicine will eliminate 738 positions by the end of June amid financial challenges from the COVID-19 pandemic.

The changes, first reported on MLive.com, followed a May announcement where the health system projected a financial loss of up to $230 million in the fiscal year ending June 30 and planned to furlough or lay off 1,400 full-time employees.

Mary Masson, a Michigan Medicine spokesperson, said July 19 the health system has achieved more than half of its target through attrition and furloughs. Therefore, the workforce reduction will affect about 738 employees. 

Affected employees will receive pay and benefits based on tenure, and all will have access to career transition assistance, Ms. Masson said in a statement provided to Becker’s Hospital Review.

“Michigan Medicine made safety in all our missions the top priority when determining where reductions in force would occur,” she said. “These challenging but carefully considered actions will help Michigan Medicine continue to provide hope and healing to our patients and allow us to continue to support our clinical, educational and research missions.”

Michigan Medicine leaders took pay cuts to reduce expenses. The health system also suspended merit increases and delayed capital projects.

Johns Hopkins to Retain Large Portion of Telehealth Services

Johns Hopkins Medicine plans to continue building momentum of its telehealth program after the COVID-19 pandemic, with the Baltimore-based health system’s CEO anticipating 30 percent of visits to be delivered virtually, The Jerusalem Post reports.

Before the pandemic, Johns Hopkins conducted a few dozen telehealth visits each day and now completes about 5,500 virtual visits per day. Paul Rothman, MD, CEO of Johns Hopkins Medicine, discussed the future of telehealth at the health system and across the industry during a June 22 virtual OurCrowd Pandemic Innovation conference.

“About 30 percent of visits we used to have in person will be via telehealth in the future,” said Dr. Rothman. “Telehealth gives us the ability to reach out where we didn’t before. We are an international healthcare provider, and it grants us access to patients who didn’t want to travel.”

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