The health system that owns Our Lady of Lourdes' Lafayette hospitals has announced cost-cutting measures.
The measures began in March, and include reduced hours for certain employees to match reduced volumes, executive salary reductions, postponing expenditures where possible and evaluating contract terms.
Franciscan Missionaries of Our Lady Health System (FMOLHS), like health systems across America, has been faced with significant financial hardships as COVID-19 has led to the necessary suspension of non-urgent/emergent surgical procedures, diagnostic procedures and clinic visits and, therefore, a decrease in overall volume of non-COVID patients, a release states.
“Our first priority is on caring for our community and responding to the pandemic. Since the onset of COVID-19 in Louisiana, Franciscan Missionaries of Our Lady Health System (FMOLHS) has seen, on average, a 50 percent reduction in overall volumes leading to net revenue losses of approximately $120 million in March and April,” said Richard R. Vath, M.D., President and CEO. “Despite these unprecedented decreases in revenue, the health system remains in a good financial position.”
“We have had to take steps to adjust to this new, if temporary, reality. While difficult, these actions are made to ensure the long-term sustainability of our health system and Sisters’ Mission beyond this pandemic. Our teams and our Board understand their responsibilities as well as preserving our collective future,” Dr. Vath continued. “We are aligned with the Governor and our other state and federal partners in evaluating and anticipating the appropriate time to safely resume procedures that have been suspended.”
Similar to many healthcare organizations, FMOLHS has received $40 million from the federal CARES Act.
FMOLHS is one of the largest healthcare systems based in Louisiana. The health system is a non-profit, Catholic organization sponsored by the Franciscan Missionaries of Our Lady. Headquartered in Baton Rouge, Louisiana, the ministry serves patients in Louisiana and Mississippi through a network of hospitals, clinics, physicians, elderly housing and integrated systems. The system’s eight hospitals include St. Francis Medical Center in Monroe, Our Lady of the Lake Regional Medical Center in Baton Rouge and Gonzales, Our Lady of the Lake Children’s Hospital, Our Lady of Lourdes Regional Medical Center and Women's & Children's in Lafayette, Our Lady of the Angels in Bogalusa and St. Dominic Hospital in Jackson.
