{"id":38096,"date":"2020-07-24T14:51:03","date_gmt":"2020-07-24T18:51:03","guid":{"rendered":"https:\/\/www.rochester.edu\/coronavirus-update\/?p=38096"},"modified":"2022-02-18T15:18:48","modified_gmt":"2022-02-18T20:18:48","slug":"update-on-financial-recovery-and-furlough-program","status":"publish","type":"post","link":"https:\/\/www.rochester.edu\/coronavirus-update\/update-on-financial-recovery-and-furlough-program\/","title":{"rendered":"Update on financial recovery and furlough program"},"content":{"rendered":"

To University of Rochester Faculty and Staff:\u00a0<\/strong><\/p>\n

It\u2019s been nearly five months since the COVID-19 pandemic changed our lives, both personally and professionally. In early March, the University curtailed routine clinical services to make way for a surge in COVID cases, ramped down research labs, and switched to online learning\u2014all in a matter of weeks. Thousands of staff went home to work remotely.<\/p>\n

Thankfully, the surge in Rochester was much less acute than projected, and our community has fared far better than many. Even so, the sudden elimination of non-essential patient services caused us to lose $253 million in revenues through June, and suspending residential education added $23 million in losses mainly due to refund of room and board fees. To stem these losses, we implemented an austerity budget, which included either partially or fully furloughing nearly 3,500 Medical Center staff and almost 1,500 staff in other parts of the University between May and August. We also implemented a hiring freeze which requires senior leadership review and approval before replacing or adding any positions.<\/p>\n

We are happy to report that our clinical operations are on the way to financial recovery. Patient volumes in June exceeded 90 percent of our pre-COVID pace, research has resumed, and School of Medicine and Dentistry and School of Nursing students and learners are already back or are scheduled to report to school soon. The other academic units of the University, including the College, are currently making plans to welcome at least some students back in August for a semester that will consist of both in-person and online instruction.<\/p>\n

These are certainly optimistic developments, but unfortunately the University\u2019s fiscal future is still unclear. There are many unknowns that could hinder a strong financial recovery. For example, another spike in COVID cases would once again reduce the clinical revenue that fuels our Medical Center. Reimbursement rates for virtual visits, which today comprise 20 percent of our clinic visits, are scheduled to decrease in January. The additional cost of PPE and the potential for cuts to Medicare and Medicaid are real points for concern. We do not yet know the impacts on academic revenues as students in non-medical academic units defer or are unable to fully take part in educational offerings because of travel restrictions or other factors.<\/p>\n

At the same time, new technologies\u2014telecommuting, telemedicine, and online learning\u2014have undeniably altered our workplace. Everyone in the University community has responded to these new circumstances with resilience and commitment, and we\u2019re grateful for the many ways in which you\u2019ve adapted to, and even thrived, in this new working environment.<\/p>\n

Given these many uncertainties, however, many elements of the measures put in place at the beginning of this pandemic, including freezes on hiring, travel restrictions, and controlled spending will need to continue in order to build back a strong financial position.\u00a0 We\u2019ll also need to take a careful look at our operations, including adjustments in workflow aimed at operational and financial efficiencies, and opportunities for continued remote work.<\/p>\n

Assessing our ability to recall furloughed staff is another important element in our recovery plans, and must take into account the very different ways in which the Medical Center and the rest of the University\u2019s business models have been affected by COVID. The Medical Center\u2019s recovery is primarily driven by returning patients\u2014an effort that\u2019s been underway for weeks.\u00a0 The rest of the University, parts of which rely heavily on tuition, faces greater uncertainty with regard to the coming academic year. Therefore, the timelines and approach to evaluating furloughed staff will differ slightly between the Medical Center and non-Medical Center divisions of the University.<\/p>\n