ROGERS -- Mercy Health System will furlough and lay off employees starting next week, according to a statement released Friday.
Mercy has hospitals in Fort Smith and Rogers as well as several clinics throughout Northwest Arkansas.
The system didn't specify how many employees would be affected.
Furloughs will last through the end of July. Those employees will maintain their health insurance coverage, and an additional 80 hours of pay may be provided through Mercy's crisis paid-time-off fund, according to the statement.
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"Mercy is also eliminating positions at every level of the organization, impacting every department and every community we serve," according to the statement. "In doing so, we will provide severance packages to help care for our co-workers and their families. At this time, Mercy is unable to provide numbers as we are still working to keep as many co-workers employed as possible."
Employees in leadership positions will earn up to 26% less this year than last, with the most significant reductions at the senior level, according to the statement.
No employees will receive 401(k)/403(b) service contributions and matches this year, and annual raises may be delayed. Mercy will not fill open positions for the foreseeable future without senior leadership approval.
"Our hearts go out to those impacted by these changes and the unprecedented impact of this global pandemic," the statement said.
Mercy Health has more than 2,600 employees, according to its website.
Mercy announced last month that it had redeployed some employees into temporary positions within the system. Employees who were unable to do their jobs because of the pandemic and who weren't moved to new positions were to receive up to 80 hours of pay through a furlough pay program.
Hospitals throughout the state have been affected by the pandemic.
Washington Regional Medical System, which has a Fayetteville hospital and several clinics in the area, has furloughed 305 full-time employees for 60 days. Washington Regional also announced in April that salaried employees would face 10% pay cuts, and members of senior management would have their pay cut up to 25%.
Natalie Hardin, a spokeswoman for Washington Regional, previously said the system planned to recall some furloughed employees upon resuming elective procedures. That began Monday.
Denten Park, chief executive officer of Northwest Health, said in April that it planned no major furloughs or layoffs.
"In a few instances, we've had to make incredibly difficult decisions to go further than reducing hours," he said.
Northwest Health, which has five hospitals in the area, has made no further announcements concerning layoffs or furloughs.
Baptist Health System, CHI St. Vincent Infirmary and Arkansas Heart Hospital in Little Rock, and Jefferson Regional Medical Center in Pine Bluff all announced furloughs in March and April.
Furloughs also have occurred at North Arkansas Regional Medical Center in Harrison, Baxter Regional Medical Center in Mountain Home, White River Medical Center in Batesville and Magnolia Regional Medical Center in Columbia County.
Metro on 05/09/2020