The toll on the hospital’s finances has forced it to permanently eliminate 450 positions, most of which are part of the corporate staff or work in other administrative roles. Those whose positions are eliminated will receive a lump-sum severance package and will likely be able to apply for enhanced state and federal unemployment benefits. They also have the option of continuing their benefits at current employee rates through their severance period.

It also will temporarily lay off 2,475 employees, with the majority being hospital administrative staff and others who are not directly involved in the care of patients with or without COVID-19. Those employees may apply for enhanced unemployment benefits available through state and federal programs, and may be asked to return to their roles as additional medical services resume at all campuses. They can continue to participate in Beaumont’s health insurance and in its other benefits programs at their current employee rates.

Fox will take a 70% temporary pay cut in his base salary, while other members of the hospital’s executive leadership team will take temporary cuts of up to 45%.

“While many front-line employees have never been busier, other parts of our operations have drastically declined or ceased,” said Fox. “We must make difficult, quick decisions now to protect and readjust to an uncertain future. We also expect economic pressures on Beaumont and the healthcare industry to continue well after the COVID-19 initial surge subsides, which is why we made the difficult decision to eliminate 450 positions. We must adjust the way we operate our organization moving forward.

Beaumont will continue to treat patients with the virus until a vaccine is developed.

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