Furloughs, Exec Pay Cuts at Children’s Mercy

Children’s Mercy Kansas City is furloughing 575 employees for 60 days and executives are taking pay cuts as a result of business loss from COVID-19.

The pediatric health system is losing about $1 million in revenue per day, as surgeries and outpatient visits are down 70 percent, urgent care has dropped 67 percent, emergency visits have fallen 57 percent, and hospital admissions are down 32 percent.

“COVID-19 is having a crushing, negative impact on patient care access, our employees and our financial performance,” said Paul Kempinski, president and chief executive officer of Children’s Mercy. “In order to keep our community safe and to prepare to care for COVID-19 patients, last month we suspended elective procedures and limited outpatient clinic visits.”

Pediatric facilities were reportedly left out of the first round of $30 billion in federal stimulus payments to hospitals.

Children’s Mercy has eliminated 200 vacant positions, suspended most capital spending, and along with 2,500 employees working from home, 350 more are at home and not working or working reduced hours.

Children’s Mercy is also nearing completion of its new research tower on the main campus south of Downtown.