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The Mayo Clinic Is Cutting Pay and Furloughing Staff Due to COVID-19

The Mayo Clinic Hospital in Phoenix.
The Mayo Clinic Hospital in Phoenix.

The Mayo Clinic is cutting pay and furloughing employees during the COVID-19 pandemic as it projects $3 billion in losses this year.

Those cuts will apply to everyone across the Mayo Clinic's campuses, including the one in Arizona. The organization is based in Rochester, Minnesota, and has a third campus in Florida.

It has more than 63,000 employees across the three locations. In Arizona, it employs 8,200 people, according to Mayo Clinic spokesperson Jim McVeigh.

Many of the details are still in the works, but what is clear is that the Mayo Clinic is making these cuts as revenue plummets with the suspension of elective surgeries due to COVID-19.

"Mayo Clinic staff are doing extraordinary work leading in the response to the COVID-19 pandemic," Dr. Richard Gray, CEO of the Mayo Clinic in Arizona, said in a statement. "Mayo Clinic is facing unprecedented challenges as a result of these circumstances, including a financial impact that requires significant adjustments to our operations."

Employees will receive full pay and benefits through April 28, but after that, "temporary furloughs of some staff and salary reductions will be required," Gray added.

The Mayo Clinic is still "working on the details" and does not yet have a hard number of affected employees in Arizona, but it does not have plans to permanently lay off staff, he said.

According to a story by Minnesota Public Radio about cuts and furloughs at the Rochester campus, executives will take a 20 percent salary cut, physicians and senior administrators 10 percent, and other salaried employees 7 percent reduction. Other workers will be furloughed.

On March 19, Arizona Governor Doug Ducey issued an executive order suspending nonessential medical and dental procedures in order to conserve personal protective equipment, ventilators, and hospitals beds, and to protect health care workers.

Four days later, the Mayo Clinic also decided to pause elective procedures across all its campuses.

In his statement, Gray said that the decision to postpone these procedures "was the right one, but it eliminated the majority of our revenue."

At the same time, he added, the hospital was spending money by "making critical investments to develop and expand testing, conduct research to stop the pandemic and re-align our facilities and care teams to treat COVID-19 patients."

The Mayo Clinic is spread across campuses in Scottsdale and Phoenix. 

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