HealthPartners to furlough 10 percent of employees amid COVID-19 pandemic

HealthPartners announced Thursday it expects to furlough approximately 10 percent of its employees because of a significant decrease in revenue due to the effects of COVID-19 pandemic. 

HealthPartners and other health care providers in the state have postponed elective surgeries and reduced in-person visits to conserve personal protective equipment for workers on the front lines of the pandemic. According to the Minnesota Hospital Association, health care providers in the state are collectively losing $31 million in revenue per day as a result of the reduction in patient volumes. At the same time, health care providers are spending millions purchasing equipment and supplies to prepare for a surge in COVID-19 patients. 

HealthPartners will furlough employees in areas where the organization has stopped, slowed or deferred work temporarily, according to a news release. 

HealthPartners has also put a hold on hiring and is eliminating open positions across the organization expect when necessary for urgent or critical needs. 

In addition to furloughing employees, salaried leaders within the organization are taking pay cuts. HealthPartners CEO Andrea Walsh is taking a 40 percent pay cut. Other leaders are taking pay cuts of up to 30 percent based on leadership level.

HealthPartners is one of a number of health care providers in Minnesota making cuts to ease the financial hits from the coronavirus pandemic. Children’s Minnesota cut salaries across the board and furlough several hundred employees. Mayo Clinic has also announced furloughs and pay reductions.