Mercyhealth announces system-wide physician and leadership pay cuts
Mercyhealth cuts salaries
ROCKFORD, Ill. (WIFR) -- Mercyhealth is the latest hospital system to announce pay reductions for leadership employees systemwide.
Today, Mercyhealth announced system-wide leadership pay reductions of 10% and some reductions in physician’s pay. At this time, Mercyhealth is working on right-sizing some services in anticipation of changing volume.
For example, right-sizing clinic operations as physicians and providers are now utilizing telemedicine services.
Prior to COVID-19, Mercyhealth was dealing with major challenges with managed Medicaid issues in the Illinois market that have momentous financial impact exceeding well over $30 million dollars a year, as compared to Mercyhealth’s actual cost of care (not what they charge). The losses from these MCOs are separate from the losses of COVID-19 that greatly exceed the losses from the MCOs.
The combine losses above are forcing Mercyhealth, who has already taken significant actions to reduce costs through the implementation of furloughs in non-direct patient care, administrative areas and their outpatient and clinic areas, to take further cost-reduction measures.
“While we all know these actions are not easy, we also know we need to make these adjustments in order to adapt to the massive changes to our business,” states Javon Bea, President/CEO Mercyhealth.
Mercyhealth no longer accepting patients with IlliniCare, Meridian, Molina Medicaid
Posted: Apr 22, 2020 / 05:49 PM CDT / Updated: Apr 22, 2020 / 05:55 PM CDT
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ROCKFORD, Ill. (WTVO) — Mercyhealth says it will no longer accept patients with IlliniCare, Meridian, or Molina Medicaid after 90 days, and Blue Cross Blue Shield after six months.
Citing a reduction in income from Medicaid and other health insurance providers, combined with the COVID-19 pandemic, Mercyhealth said it would be instituting reductions of 10% to leadership system-wide, in addition to some physicians.
“While we all know these actions are not easy, we also know we need to make these adjustments in order to adapt to the massive changes to our business,” stated Javon Bea, President/CEO Mercyhealth.
The hospital says it was dealing with financial challenges with Medicaid prior to the COVID-19 outbreak.
The hospital said Wednesday that patients who are subscribers with IlliniCare, Meridian and Molina Medicaid Managed Care Organizations (MCOs) will have 90 days to find other health care providers, doctors and hospitals. Blue Cross Blue Shield Medicaid will have six months.
Mercyhealth will continue to accept those Medicaid patients who are assigned as subscribers tied directly to the State of Illinois Medicaid program.
“We have worked in good faith for several weeks with IlliniCare, Meridian and the other MCOs in an effort to renegotiate contract language that includes acceptable provisions,” said Kim Scaccia, Vice President of Revenue Cycle Management. “Unfortunately we have not been able to reach agreement with them. Therefore, the Mercyhealth agreements with the MCOs will terminate on July 21, 2020 and Blue Cross Blue Shield Medicaid will terminate on October 22, 2020.
Mercyhealth said its losses from Medicaid exceeds $30 million a year.
In addition, the hospital is preparing for an influx of coronavirus patients by reallocating beds from the pediatric ICU and behavioral health centers, expanding its ICU capacity at its Rockton campus to 11 beds. The company says it will be moving 26 beds from the other units to the ICU at the Riverside campus
Above is from: https://www.mystateline.com/news/local-news/mercyhealth-no-longer-accepting-patients-with-illinicare-meridian-molina-medicaid/
You may also be interested in this prior posting on Mercy Hospital
Mercyhealth Rockton Avenue campus to treat COVID-19 patients; City, area hospitals react
Mercyhealth Rockton Avenue campus converted to COVID-19 hospital
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By WIFR Newsroom |
Posted: Thu 10:20 AM, Apr 16, 2020 |
Updated: Thu 5:54 PM, Apr 16, 2020
ROCKFORD, Ill. (WIFR) -- On Thursday, Mercyhealth announced a plan to convert its Rockton Avenue hospital into a singular location to treat Rockford’s COVID-19 patients.
At the Rockton Avenue Hospital, Mercyhealth made numerous adjustments to accommodate a COVID-19 surge including enhancing airflow by changing hospital units into negative pressure units and adding a number of critical care beds.
From the earliest days of the COVID-19 pandemic, Mercyhealth has moved COVID-19 patients to the Rockton Avenue Hospital campus, maintaining the Riverside Hospital campus for NON-COVID-19 patients.
“We feel we can safely begin to perform select procedures at our Riverside Hospital campus,” states Javon Bea, President/CEO of Mercyhealth. “We have had numerous requests from patients to open outpatient services such as elective surgeries and radiology imaging services. I am sure the other Rockford hospitals have had similar requests. These services can be safely performed using appropriate protocols and precautions at our Riverside Hospital. We are confident in our plans to care for COVID-19 patients at our Rockton Avenue Hospital and NON-COVID-19 patients at our Riverside Hospital,” Bea adds.
Bea said the hospital had reached out to OSF and SwedishAmerican about their interest in participating in the plan, which would leave their hospitals open to accept NON-COVID-19 patients and perform elective procedures.
Dr. John Dorsey of Mercyhealth says, "We are certainly not looking to be the only ones doing elective surgery, what's good for us is good for everyone in the community... but I also want to make sure that absolutely everybody understands that all three health systems have risen to this along with the government, crusader, etcetera and we are all in this together..."
For the plan to be put in place, . Rockford Mayor Tom McNamara says he's disappointed in this news and says its a unilateral approach to combating the virus.
McNamara says, "We are disappointed that Mercyhealth CEO Javon Bea has chosen to act unilaterally without working through the proper channels and emergency operations center and the COVID-19 policy group... I have reached out to Javon during this crisis and have not heard back nor has he chosen to participate in any of our policy group discussions..."
SwedishAmerican Hospital President and CEO Jennifer Maher responded by saying, “We are shocked and disappointed by Mercyhealth’s announcement today. From day one, SwedishAmerican has been working in close partnership with the City of Rockford, Winnebago County Health Department and area health systems to have a coordinated plan to best care for COVID-19 patients. SwedishAmerican remains confident in our abilities to care for our community.”
OSF Saint Anthony Medical Center responded by saying, "Today’s announcement by Mercyhealth was unexpected as we have been working collaboratively with the Winnebago County Health department led Emergency Operations Center (EOC) as a coordinated COVID-19 Policy Group. We are all operating under Governor Pritzker’s executive order to not resume non-essential health care procedures until the order is lifted. We believe it is in the best interest of our communities to support the cohesive response through the EOC during this national pandemic.
Above is from: https://www.wifr.com/content/news/MercyHealth-Rockton-Avenue-campus-to-treat-COVID-19-patients-569692571.html
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