St. Bernards to furlough workers; NEA Baptist says no furloughs planned

The COVID-19 pandemic has caused one of the largest employers in Northeast Arkansas to furlough employees. St. Bernards Healthcare President Chris Barber said Tuesday (April 14) a furlough process had started in the system.

During the last month the system has lost about $30 million in revenues due to the changes in the healthcare industry brought on by the pandemic, including a catastrophic drop in elective surgeries and other services, media relations manager Mitchell Nail told Talk Business & Politics. That monthly loss of revenue is projected to last until services return to normal, he added.

The region’s other major healthcare provider, NEA Baptist Health System hasn’t announced furloughs. NEA Baptist Health System director of marketing issued this statement to Talk Business & Politics: “At this time, we have no plans to furlough employees.”

The furloughs at St. Bernards will begin immediately. Nail said system administrators have taken pay cuts.

“Foremost, the news is an incredibly difficult reality for us. We don’t have answer on specific numbers because the ongoing COVID-19 situation remains fluid. It’s important, however, to note the difference between a furlough and a layoff here. Furloughed individuals are still listed as current employees despite not working or receiving wages for a time. The period is often finite with the expectation to resume normal operations when feasible. Conversely, laid-off workers experience a separation from the employer; often permanently. An individual who is laid off is not listed on the employer’s books. Because our team members are furloughed rather than laid off, our HR team is working closely with them to make sure they receive every benefit possible,” Barber said.

The furloughs will begin with employees who volunteer, Nail said. Administrators should have a firmer grasp of exactly how many employees will be furloughed by the end of the week. Workers tied to the system’s COVID surge response plan will not be included, he added.

St. Bernards employs 2,700 at the medical center and has a total of 4,200 employees throughout its system that stretches across the region. The system treats hundreds of thousands of patients in the region each year. Nail said due to the unpredictable nature of the pandemic, how long and how many employees this will impact is unknown.

Barber said he knows this will be tough on employees, but they are not permanently losing their jobs and remain eligible for other benefits such as healthcare.

“To make another distinction, I understand a St. Bernards team member under furlough is still eligible for certain employer benefits, such as health insurance, as long as they maintain their typical employee-share of the premium. This aspect of furloughing operates differently than a lay-off where an employee often seeks expensive COBRA coverage upon separation,” he said.