Fayetteville’s Washington Regional furloughs hundreds, cuts pay amid coronavirus

Washington Regional Medical System in Fayetteville will furlough 305 full-time equivalent workers, president and CEO Larry Shackelford said Thursday (April 16).

In a prepared statement, Shackelford said the directives of federal and state public health authorities that hospitals limit all non-urgent and non-emergent surgical, diagnostic and outpatient procedures as a result of the coronavirus pandemic has resulted in drastic declines in both patient volumes and hospital revenues.

Shackelford said the furloughs are for 60 days, effective April 19. The furloughs will affect workers who do not currently perform functions that are critical to direct patient care delivery at the bedside.

“As a locally owned and governed nonprofit health system, Washington Regional has always been a good steward of its resources and targeting those resources to match the specific needs of our community,” Shackelford said. “Unfortunately, the impact of the coronavirus pandemic has necessitated that Washington Regional implement many of the same cost reduction strategies that have been taken by most other health systems in Arkansas and across the nation.”

In addition, all salaried members of Washington Regional’s workforce have received a 10% reduction in salary, with members of senior management receiving up to a 25% reduction.

Washington Regional spokeswoman Cynthia Crowder said the health system has 3,200 workers. Crowder did not specify how many of those workers are full-time employees.

Shackelford reiterated that a furlough is a reduction in days or weeks an employee may work. It is not a layoff.

“It is our expectation that our team members who are furloughed will be able to return to work once the public health emergency and its consequences come to an end,” he wrote in the statement. “Furloughed workers will remain Washington Regional team members and will continue to have access to health and related benefits.

“We understand the significant impact these measures have on our valued team members. We appreciate our community and ask for its continued support for our team members and charitable mission as we continue to prepare and respond to this unprecedented public health emergency.”