M Health Fairview to cut staff hours for next 4 weeks amid revenue shortfall

M Health Fairview is set to reduce hours for some staff starting on Monday, a spokesperson told KSTP on Saturday.

According to a statement, the health care provider told employees on Tuesday that starting April 6 and continuing through May 3, some employees will receive a minimum of 50% pay because of a decrease in overall patients. Workers will continue to receive full benefits, regardless of hours worked.

The changes affect about 15% of all M Health Fairview employees. No front-line workers dealing directly with COVID-19 patients will be affected.

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M Health Fairview said the cuts are driven by the postponement of non-critical procedures and a transition to virtual health care appointments, as well as a need to step up spending on equipment and supplies related to COVID-19.

The hospital system cited a potential decline in revenue by as much as one-third as a major reason for cutting costs. M Health Fairview operated on a 0.2% margin in Fiscal Year 2018.

“We are deeply grateful to all of our employees for the heroic work they are doing during this unprecedented crisis," said James Hereford, president and CEO of Fairview Health Services. "The changes we’re making now are needed to ensure the long-term health of our system, so it can serve the community throughout this crisis and beyond.”

It's possible that employees will be called back or reassigned to address future surges in COVID-19 patients.