ROCKFORD — Mercyhealth recently announced system-wide leadership pay reductions of 10% and some reductions in physician’s pay.

Prior to COVID-19, Mercyhealth was dealing with major challenges with managed Medicaid issues in the Illinois market that have momentous financial impact exceeding well over $30 million dollars a year, as compared to Mercyhealth’s actual cost of care (not what they charge). The losses from these managed care organizations are separate from the losses of COVID-19 that greatly exceed the losses from the MCOs.

The combine losses above are forcing Mercyhealth, who has already taken significant actions to reduce costs through the implementation of furloughs in non-direct patient care, administrative areas and their outpatient and clinic areas, to take further cost-reduction measures.

At this time, Mercyhealth is working on right-sizing some services in anticipation of changing volume. For example, right-sizing clinic operations as physicians and providers are now utilizing telemedicine services.

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