Lifespan Devastated by Coronavirus — Loses $75.7M in March, Nurses Committed to Difficult Work
GoLocalProv Business Team
Lifespan Devastated by Coronavirus — Loses $75.7M in March, Nurses Committed to Difficult Work
The losses included an operating loss of $23.8 million for the month of March related to the COVID-19 crisis.
The losses were primarily due to the canceling of elective surgeries, closing of ambulatory sites, and a significant reduction in office and emergency room visits.
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After factoring in $8.9 million for restructuring expenses unrelated to COVID-19, the Lifespan operating loss for the month of March 2020 is $32.7 million. Investment losses included in nonoperating gains/losses of $41.1 million will result in a one-month overall net loss of $75.7 million.
Worst Loss in More Than Decade
For the entire fiscal year of 2019, Lifespan reported an operating loss of $23 million and a net loss of $34.9 million—their worst loss in more than a decade.
“From a purely financial standpoint, this crisis could not have come at a worse time for Lifespan since we were beginning to reap the financial benefits of our restructuring efforts that began at the end of last year. As we recently reported, operating losses shrunk to $2.6 million for the first quarter of fiscal year 2020 (October 1, 2019 – December 31, 2019),” said Dr. Timothy Babineau, Lifespan’s President and CEO.
“Unfortunately, we anticipate that April and May will be even worse, and we could approach $100 million in operating losses for the time period March-May. We are working around the clock developing plans to mitigate these losses while working hard to keep as many Lifespan staff employed as possible. We sincerely hope the state and federal government will provide enough financial relief to ensure that Lifespan can be here when our citizens need us the most. Recently, we received approximately $25 million in federal relief. Certainly, a help, but much more needs to be done," he said.
In a partial response to these financial challenges, Lifespan said Babineau stopped drawing any salary as of April 1, 2020.
Nurses Respond
United Nurses and Allied Professionals (UNAP) Local 5098 President Frank Sims, RN, said in a statement, "Our members are committed to doing the difficult work that is necessary to care for Rhode Islanders during this unique crisis. We have spoken directly with the governor and members of our state's Federal Delegation to express concern that many hospitals were operating under financial stress before COVID-19 became a daily priority. We are grateful for their efforts to steer critical resources here, and remain hopeful that Rhode Island will continue to receive its fair share of relief funding."
"UNAP has worked closely and well with hospital leaders during these difficult times, and we recognize the extreme financial pressure Lifespan is under, but our members are risking their lives and any present or future plans to reduce staff at Rhode Island Hospital would be borderline criminal," said Sims.
UNAP Local 5098 represents approximately 2,700 nurses, technologists, therapists, and mental health workers at Rhode Island and Hasbro Children's Hospitals.