Baylor Scott & White To Cut 1,200 Austin Jobs

AUSTIN, TX — Baylor Scott & White health system officials confirmed the imminent layoffs of some 1,200 workers, roughly 3 percent of the staff, as the hospital system grapples with the financial impact of the coronavirus.

In a prepared statement provided to Patch, hospital officials blame the cuts to a drop in hospital visits, largely as a result of a suspension in non-urgent surgeries and procedures to make room for patients afflicted by the respiratory illness.

"Throughout the course of the pandemic, our focus has been on the safety and well-being of our patients and team members," the statement read. "Early on, we made the decision to protect the pay of all employees through the end of May, and we recently extended that through June 7th. We worked to reassure and safeguard our people through the uncertainty as we prepared for a potential surge of COVID-19 patients, yet experienced a drastic drop in visits, largely due to the suspension of non-urgent surgeries and procedures."

In dealing with the shortfall, officials are taking steps "to adapt in continued unpredictability," officials said. "These changes include temporary salary reductions of senior executives, modified physician compensation models, flexing and furloughing of employees to accommodate changing volumes, and a reduction of our workforce of around 3 percent. While designed to better match our resources with evolving community needs, any decisions to part with our people are always very difficult. We are committed to supporting these team members’ transitions in every way possible."

Officials noted further measures being undertaken: "Other changes were announced to employees today as part of a comprehensive plan to strengthen our organization for the future, including growing digital offerings and further investing in team members on the front lines. For example, beginning in June, we will be raising the hourly rate for nearly 12,000 nurses and staff."

Notwithstanding the planned cuts, the hospital has seen an increase in patient admissions, officials said in the prepared statement. "In fact, as of this week, patient volumes at our clinics (in-person and telemedicine) were back to roughly 95 percent of pre-COVID levels, hospital admissions were back to roughly 92 percent and operating room cases were back to around 97 percent of pre-COVID levels. While patient volumes are steadily increasing, we remain in a financial recovery period during which we must plan for continued unpredictability."