The Mayo Clinic will eliminate pay cuts and call back furloughed workers by the end of summer, according to a news release.
Rochester, Minn.-Mayo said that effective Wednesday all staff, except senior leadership, will have pay restored to pre-COVID-19 levels by mid-July, which was months sooner than expected, the system said. The change will be reflected in July 14 paychecks.
Furloughed workers will return to work by the end of August, with some working remotely to protect patients and staff, Mayo President and CEO Dr. Gianrico Farrugia said. About 23,000 employees the Mayo system have been furloughed, said Traci Klein, a Mayo spokesperson.
Mayo announced furloughs in April after projecting $3 billion in operating losses for the year, unless changes were made. The system's operating income was down 88% at the end of the first quarter of 2020.
Farrugia said patient volumes and financial targets over the past eight weeks have "truly exceeded expectations."
"In short, we are in a much better position than we anticipated, and we're very pleased to be able to restore pay and end furloughs early," Gianrico said in a prepared statement.
Mayo said its outpatient visits and procedural and surgical volumes are rising, and patient volumes have reached 85-90% of normal levels by mid-June.
The system noted, however, that while it is in a better position than expected, that financials are still below budgeted 2020 levels. And "the environment, relative to the progression of COVID-19 and the nation's economic performance, remains fluid and challenging," according to the release.
As of May 15, Mayo said it had received $220 million in CARE Act funds and $915 million in advance Medicare payments. The system said it is "only retaining those funds that can be directly attributed to the pandemic."