Mayo clinic layoffs

Mayo clinic layoffs DEFAULT

Mayo Clinic furloughs, cuts hours of 30,000 employees to help offset $3B in pandemic losses

Rochester, Minn.-based Mayo Clinic said it will furlough or cut the hours of about 30,000 staff members to help offset about $3 billion in losses incurred by the COVID-19 pandemic, according to The Post Bulletin.

Mayo Clinic announced that it would need to take several cost cutting measures, including furloughs, earlier in April. However, the system didn't disclose the number of employees that would be affected. 

The temporary reduction in workforce is one of the ways the system is working to offset a $3 billion loss from the pandemic. Even with the cost-cutting measures, Mayo anticipates a $900 million shortfall this year.

The furloughs or reduced hours affect about 42 percent of Mayo Clinic's 70,000 employees across its campuses in Arizona, Florida and Minnesota. 

Affected employees will still receive healthcare benefits. 

The furloughs will begin in May and be spread throughout the rest of the year, Mayo Clinic spokesperson Ginger Plumbo told the publication. The duration of the furlough will vary depending on the hospital unit, she added. 

The furloughs will not affect physicians at the system, but physicians will receive a 10 percent wage reduction. In addition, senior managers will receive pay cuts of 15 percent and top executives will take a 20 percent reduction. 

The furloughs, cut hours and wage reductions are expected to save $1.4 billion. 

Mayo Clinic also has been taking other cost-cutting measures, including a hiring freeze and halting major construction projects. 

Mayo Clinic is also tapping into its reserves to bring $900 million in cash to the system. 


The state’s largest private employer is instituting across-the-board pay cuts and furloughs to shoulder a projected $3 billion loss this year.

Mayo Clinic’s cost-cutting measures follow its decision in mid-March to halt elective surgeries and procedures — a move that was quickly applied statewide as part of Gov. Tim Walz’s executive order to suspend non-critical medical procedures not deemed essential to save a life.

“The decision to eliminate elective surgeries and outpatient visits was the right decision in terms of protecting the safety of our patients and staff, and also preserving limited PPE (personal protective equipment),” said Chief Administrative Officer Jeff Bolton. “But it has led to significant reductions in revenues.”

Bolton said the hospital in Rochester is at about 35 percent of capacity, while capacity in Mayo’s surgery services is at about 25 percent.

“If you go back to the Great Depression, the institution went through a very similar financial crisis, and salaries were reduced during that period of time,” said Bolton. “There were a lot of actions that were very similar to the ones we are taking today.”

The pay and work reductions, which will apply to all employees at Mayo’s campuses in Minnesota, Florida and Arizona, will start in May, and last until the end of the year. Together, Mayo employs more than 63,000 people.

Other hospital systems, including Essentia Health based in Duluth and M Health Fairview based in the Twin Cities, have also cut staff or reduced hours to make up for lost revenue.

Mayo Clinic executives, including CEO Gianrico Farrugia, will take a 20 percent cut starting this month. Physicians and senior administrators will take a 10 percent salary cut, other salaried employees will take a 7 percent reduction, while other workers will be asked to take extended furloughs.

That’s in addition to a hiring freeze, laying off contract employees and halting some construction projects, Bolton said.

Even after these changes, Mayo will face a $900 million shortfall at the end of the year, which will be covered by Mayo’s reserves established over the last decade, Bolton said.

Bolton said cost-cutting measures will not affect the pay rate of hourly workers.

The financial blow of halting elective services comes on the heels of what Mayo officials had described as a “year of remarkable growth.” In 2019, Mayo reported revenue of $13.8 billion, which was up nearly 10 percent from the previous year.

For the first time in Mayo’s history, net operating income topped out at $1 billion.

The pay cuts and furloughs also come in the midst of a massive economic development project in Rochester driven by Mayo Clinic. Destination Medical Center has promised growth in the region’s hospitality and retail sector, but also significant job growth in large part spurred by Mayo’s hiring and investment.

Bolton said that the plan plays out over 20 years, which gives Mayo — and the entire project — time to bounce back.

“With everyone pitching in to address this, we will come out of this strong,” he said. “Our forecast looks at coming back to normal toward the end of the year, and moving into next year continuing in our growth mode.”

Bolton added that Mayo’s ability to rebound after the end of the year will also depend on how long the pandemic lasts, and if a global recession impacts how many patients travel to Mayo for treatment.

Editor’s note: Reporter Catharine Richert is married to a Mayo Clinic physician who will be affected by these pay changes.

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Mayo Clinic to restore pay and return workers furloughed due to the COVID-19 pandemic

the blue and white Mayo Clinic shields flag flying outside the Gonda building windows in Rochester Minnesota

ROCHESTER, Minn. — Mayo Clinic announced today it will restore pay levels for staff effective June 24 and return furloughed workers by the end of August, well ahead of schedule.

The hard work, flexibility and sacrifice of staff have resulted in a better than expected increase of activity across Practice, Research and Education, according to Gianrico Farrugia, M.D., president and CEO, Mayo Clinic. Outpatient visits and procedural and surgical volumes are rising as Mayo Clinic prioritizes patient and staff safety along with high-quality care. 

Because of these positive trends, Mayo Clinic will restore pay to pre COVID-19 levels for all staff except senior leadership in mid-July. The pay restoration will be realized in the July paycheck, months sooner than had been anticipated.

three Mayo Clinic employees in medical scrubs wearing face masks and eye coverings

“Because of our staff's teamwork and commitment to patients, our practice reactivation over the past eight weeks has truly exceeded expectations for revised 2020 patient volumes and financial targets,” says Dr. Farrugia.  “In short, we are in a much better position than we anticipated, and we're very pleased to be able to restore pay and end furloughs early."

Dr. Farrugia also noted that while furloughed staff will return to work by the end of August, not everyone will return to campus. The pandemic has demonstrated that many people can work effectively from home given the need to protect patients and staff, he says.

Mayo Clinic also is taking a deliberate and proactive approach to secure available government relief funding through the CARES Act, making sure to only retaining those funds that can be directly attributed to the pandemic.

Mayo Clinic medical personel in scrubs, white jackets and protective face masks in a hospital corridor having a conversation

Quick facts:

  • This positive performance is the result of the extraordinary commitment and hard work of Mayo's entire staff.
  • With the reactivation of the practice, patient volumes reached 85-90% of normal by mid-June.
  • Mayo Clinic has recovered more quickly than originally expected — but is not yet back to originally planned 2020 financial performance and will need to continue its extraordinary efforts to make sure patients receive quality and timely care. 
  • The environment, relative to the progression of COVID-19 and the nation’s economic performance, remains fluid and challenging. 
  • Mayo Clinic will remain as nimble as response, closely monitoring the pandemic and adapting as needed.

Media contact: Traci Klein, Mayo Clinic Public Affairs, [email protected]

Check the Centers for Disease Control and Prevention website for additional updates on COVID-19. For more information and all your COVID-19 coverage, go to the Mayo Clinic News Network and

Mayo Clinic Q\u0026A podcast: Continuing progress in the battle against COVID-19

Mayo Clinic to pay back reduced wages plus $1,000 to staff

This is a reversal of Mayo Clinic strategy announced in April to furlough or reduce the hours of about 42 percent of its 70,000 employees across all of its campuses. Mayo said it was an attempt to mitigate an anticipated $3 billion loss due to the COVID-19 pandemic.

The furloughs and pay cuts reduced Mayo Clinic’s workforce of almost 70,000 full-time equivalents by 9,800 in May and 8,600 in June.

By June, officials announced that Mayo Clinic was operating at 85 to 90 percent of normal. Mayo Clinic also received $150 million in federal Coronavirus Aid, Relief and Economic Security (CARES) Act funding, plus an additional $900 million in advance Medicare payments.

The employee payments were announced Monday in a letter from Mayo Clinic CEO Dr. Gianrico Farrugia and Chief Administrative Officer Jeffrey Bolton.

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“The last six months have been among the most challenging in Mayo Clinic's history. Thanks to you and your unwavering commitment to put the needs of patients first, and with the help of our leadership teams, we are in a much stronger position than we ever could have predicted,” started the internal message. “To show our gratitude and to thank you for your efforts, we're pleased to share that our finances have stabilized to the point that we're in a position to make several salary and benefit payments.”

A “one-time lump sum payment of $1,000” will be paid on Oct. 23 to “ full-time and part-time allied health staff, including administrative voting staff on the Allied Health Staff Pay Plan, as well as residents and research associates in regular or limited-tenure positions hired prior to Sept. 1.”

Executive administrators, consultants and supplemental staff will not receive the $1,000 payment.

Employees who had their wages reduced by 7 percent or 10 percent from April 29 to June 23 will receive “a lump sum for eight weeks of pay reduction.”

The amount of the payment will not be affected by any temporary reduction in hours or time spent on furlough.

The letter also announced that Mayo Clinic will make retirement savings match payments of up to 4 percent of contributions for the full year. This change restores the match for the period it was suspended.

“We're extremely grateful for the efforts and sacrifices you made throughout these months that challenged us to work in new ways and at warp speed,” wrote Farrugia and Bolton. “Thank you. You are what makes Mayo Clinic extraordinary.”


Clinic layoffs mayo

ROCHESTER, Minn. (KTTC) -- In an online statement posted Wednesday afternoon, Mayo Clinic announced it is restoring pay levels to pre COVID-19 levels for staff and returning furloughed workers by the end of August.

Back in April, Mayo announced the furloughs and pay reductions due to financial hardship from the COVID-19 pandemic. About about 30,000 staff members at all locations were to be affected.

Mayo says it's ending all that early due to a better than expected increase of activity across practice, research and education. Mayo also says outpatient visits, procedural and surgical volumes are rising.

“Because of our staff's teamwork and commitment to patients, our practice reactivation over the past eight weeks has truly exceeded expectations for revised 2020 patient volumes and financial targets,” said Mayo Clinic President and CEO Dr. Gianrico Farrugia. “In short, we are in a much better position than we anticipated, and we're very pleased to be able to restore pay and end furloughs early."

While furloughs are ending, Mayo says not every employee will be returning to their respective offices. Dr. Farrugia says, "The pandemic has demonstrated that many people can work effectively from home given the need to protect patients and staff."

Mayo's full announcement can be read here.

The Mayo Difference-Mayo Clinic

30,000 Mayo Clinic employees facing furloughs or reduced hours

ROCHESTER, Minn. – About 30,000 Mayo Clinic employees across the country will either be furloughed or see their hours cut.

The health care providers say it’s a step to stabilize Mayo’s financial condition during the coronavirus pandemic. The furloughs will start in early May and will be spread through the rest of 2020. Mayo says no layoffs are planned.

Below is an official statement from Mayo Clinic on this development:

“As part of our financial stabilization efforts related to the COVID-19 pandemic, supervisors and managers at Mayo Clinic have been informing affected staff this week about the timing and duration of furloughs. Approximately 30,000 staff from across all Mayo locations will receive reduced hours or some type of furlough, though the duration will vary depending on the work unit.”

“Furloughs will begin in early May and will be spread through the rest of the year, with as many as possible happening through August. We do not plan layoffs and will continue to provide health care benefits through this period. This is one part of Mayo Clinic’s financial stabilization strategy, which also includes broad expense reduction efforts and using Mayo Clinic’s reserves to focus on the needs of our patients and staff.”

“As we move through these difficult times, our priority is the safety and care of our patients and staff. We are prepared to serve patients whose needs cannot be deferred or delayed without risk to their wellbeing.”


Similar news:

The Mayo Clinic is set to lay off up to 400 medical transcriptionists

A non-profit organisation dedicated to providing a 360-degree approach to patient care, The Mayo Clinic has recently informed up to 400 medical transcriptionists that they will be offered buy out packages as a result of laying off its transcription workforce.

The implementation of new digital tools and systems is revolutionising the workforce, and the medical transcription sector is no exception. Amazon has launched its Amazon Transcribe service for Amazon Web Services (AWS), whereas start-ups such as Tetra, Trint, and many others are seeking to disrupt a service which has been in demand for decades.

Nonetheless, The Mayo Clinic has been transforming its electronic health record (EHR) systems in a bid to deliver patient care which is increasingly connected. From implementing its new health system in Wisconsin and Minnesota, the new system is set to go live in Rochester next month, and then onto Florida and Arizona, Healthcare Dive has reported.

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“Mayo Clinic is therefore looking at ways to manage the transcription workforce, which is why we offered this voluntary separation package to all transcription staff who may be interested in leaving Mayo Clinic and/or pursuing other opportunities,” explained Roshy Didehan, chair of practice administration at The Mayo Clinic.

“We do not yet know how many will choose this option, nor do we yet know the longer-term reductions in transcription volumes.”

Whilst laying off staff will reduce ongoing labour costs; the use of new technologies will provide a multitude of advantages across the clinic’s 20 hospitals and boost annual revenue. The implementation of its new EHR system will incorporate the use of a voice transcribing application, and will replace three previous systems, utilised under the clinic’s umbrella.

“For years, Mayo had operated a bit like a holding company, with regional groups,” commented Karl Poterack, M.D., Medical Director, Applied Clinical Informatics, in the Office of Information & Knowledge Management at the Mayo Clinic health system.

“There was a recognition that perhaps we could develop [more universal] best practices, and that, when patients with the same symptoms and issues come to different facilities, they should get the same care. So, converging on the same EHR, with the same order sets, the same build, was seen as a way to build convergence.”


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