Michigan-based hospital system Trinity Health expects to lose $2 billion in fiscal 2021 due to the COVID-19 pandemic that has forced more furloughs and layoffs.
The 92-hospital system said Monday that it expects to have annual operating revenue of roughly $17 billion, down from $19 billion. But it could not project any other details on the direct financial impact of COVID-19.
“While the Federal Government has provided financial support, this funding does not completely cover operating losses incurred as a result of the pandemic,” the system said in an update.
Trinity also announced that it will lay off more and extend or install new furloughs for employees, but it did not give a number.
“These decisions are being customized across the system based on the related circumstances, including volume growth projections and the cost and revenue challenges in each market,” Trinity Health said.
The system previously announced furloughs at the beginning of April as the cancellation of elective procedures started to put a clamp on revenues.
Trinity said on Monday that it has drawn on credit facilities to get $1 billion in additional liquidity to keep itself afloat during the pandemic.
It also noted that the duration and length of time until the system returns to normal operations is unknown.
“It is management’s belief that operating revenue will remain below historical levels for the remainder of this fiscal year and for much of the next fiscal year, until such time as a vaccine is available and hospital and outpatient services are restored to their previous full capacity,” the update said.
Like many other health systems, Trinity is slowing resuming elective procedures canceled back in March.
“Trinity Health has developed plans to rebuild our volumes and is seeing some moderate but steady inpatient and outpatient business returning to our Health Ministries,” the system said. “Our plans are dependent on the safe ramp-up of services and the willingness of patients to return to our Health Ministries for care while the virus remains active in the environment.”