Munson Healthcare COVID-19 Recovery Plan

Due to the COVID-19 pandemic, Munson Healthcare underwent rapid changes to meet the evolving needs of our communities. Our Purpose of “We Improve Lives” was never more evident during this pandemic as we adjusted operations to meet the needs of patients through the implementation of virtual visits, leveraging technology to connect patients and families under tight visitor restrictions, and regionalized care delivery to balance valuable resources.

Financial Impact from COVID-19

In April, we announced the projected operational and financial impact of COVID-19 on Munson Healthcare and the first phase of our plan to sustain our future. At that time, we furloughed some employees; reduced work hours for others; put holds on capital funding and projects not related to the COVID-19 pandemic; and all vice presidents and above took pay cuts which resulted in compensation reductions of at least 20% depending on the position.

We also left no stone unturned to secure Government funding to help offset the financial impact we incurred April through May. Although this one-time funding will help us in the short-term, that support will not be available to help sustain us going forward.

State and federal budget deficits will likely become significant. Healthcare is 27% of federal spending and cuts to health spending appear unavoidable. And, we still face Auto No-fault cuts of $10 million in the new fiscal year. 

As we look ahead, Munson Healthcare will need the flexibility to treat both COVID-19 and non COVID-19 patients simultaneously until a vaccine is available. This will continue to disrupt our operations and processes. 

Much like other businesses impacted by COVID-19, Munson Healthcare does not anticipate returning to pre-COVID-19 volumes of patients in some areas for the next 12-18 months. Some will operate somewhere between 80-90% of pre-COVID-19 volumes.

As the largest healthcare system and the largest employer in northern Michigan, we have a responsibility to ensure that we can continue to support our communities for the next 100 years — and we take that responsibility seriously.

Transforming for the Future

For the reasons mentioned above, Munson Healthcare is now deploying Phase 2 of our COVID-19 Recovery Plan. These changes are necessary so that we can continue to deliver high-quality, compassionate care for our patients and communities long into the future. Over the next 12 – 18 months we will be transforming our healthcare system significantly by:

• Evolving the way we care for patients through the use of technology, telemedicine, and other innovative delivery models.
• Focusing on strategies that better position us to thrive in an environment that holds hospitals accountable for improving the health of the communities we serve. 
• Accelerating the pace at which we work together to meet the needs of our rural communities.
• Adjusting our cost structure to reflect the reality of the impact that COVID-19, Auto No-Fault changes, and reduced funding from state and federal sources have on our operations.

Even though there will be changes throughout Munson Healthcare, our commitment to safety, clinical excellence and care delivery is unwavering and uncompromised. Our actions over the next year will have a direct impact on the long-term future of our organization and healthcare in northern Michigan.

Our community is the reason we are so passionate about the critical work we do. Munson Healthcare is ready to serve you, and we can only do that with your support. Please send your feedback and questions to voicesandviews@mhc.net. Together, we will continue to provide the highest quality and safest care in northern Michigan for you, your family and our community.