|
 Employees
on furlough include those in certain administrative support jobs and
corporate office jobs as well as healthcare workers involved in
elective care procedures such as knee replacements and routine
colonoscopies.
"All of our ambulatory centers and certain hospital units which were
not needed for this crisis have been closed or significantly ramped
down," Tenet Chief Executive Officer Ron Rittenmeyer said in the
letter reviewed by Reuters and reported here for the first time.
"While we are concerned for the COVID-19 patients we are caring for
across our system, we are equally concerned for our other patients
who must now wait to receive medically necessary procedures."
He said the furloughs will have no effect on care for COVID-19
patients, or any other emergency or medically necessary care at
Tenet's hospitals.
Dallas-based Tenet operates 65 hospitals and about 500 other
healthcare facilities, including ambulatory surgery centers.
Several states, including New York, New Jersey and Washington, have
required hospitals to halt lucrative elective surgeries in order to
focus on expanding capacity for intensive care for patients infected
with the new coronavirus.
The U.S. death toll from COVID-19, the highly contagious respiratory
illness caused by the virus, topped 25,700 on Tuesday, out of more
than 600,000 known U.S. infections, according to a running Reuters
tally.
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Hospital administrators said high-margin services, such as orthopedic and heart
procedures, can account for up to 80% of revenue, while infectious disease and
intensive respiratory treatments are less profitable.
Tenet earlier this month withdrew its previously announced outlook for first
quarter and full-year 2020 financial results, citing continued uncertainty due
to the outbreak.
The American Hospital Association earlier this month warned of "a historic
financial crisis" at U.S. hospitals, where "virtually all regular operations
have come to a halt ... causing major cash flow concerns that threaten the
viability of hospitals."
Tenet said it will continue to cover healthcare insurance premiums for
furloughed employees, who will be eligible for unemployment benefits. The
company also has a fund for employees who have experienced hardship.
Rittenmeyer said he would donate 50% of his April-June salary to that fund,
while other Tenet executives would donate 10-20% of their salaries.
"We remain ready to resume vital elective care in our communities once
government restrictions are lifted," the CEO said.
(Reporting by Deena Beasley; Editing by Christopher Cushing)
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