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Mosaic Life Care cutting positions amid COVID-19 pandemic

The St. Joseph-based health care system said the layoffs are at the leadership level.

Posted: May 1, 2020 4:09 PM
Updated: May 2, 2020 12:07 PM

(ST. JOSEPH, Mo.) Mosaic Life Care announced its laying off seven leadership level positions due to the coronavirus pandemic.

The St. Joseph-based health care system said the layoffs are at the vice-president level or higher.

In addition, all officers, physicians, vice-presidents and directors will take pay reduction. The hospital said it will also resize some services which are not widely used.

Mosaic is the largest employer in the region with more than 4,000 employees and hospitals in St. Joseph, Maryville, Albany and a Long Term Acute Care Hospital in St. Joseph.

"We are proud of the extraordinary work Mosaic caregivers have done during this global pandemic," says Mark Laney, MD, CEO. "However, the financial impact has been significant on our operations and this decision is a necessary step to ensure Mosaic is here for the long term to meet the health needs in our region. Our hospitals remain the best and safest place to receive care."

Mosaic said many factors contributed to the financial impact on Mosaic, including postponing elective surgeries for the last few weeks and making critical investments in supplies and construction to treat COVID-19 patients and minimizing risk and exposure to caregivers.

Hospitals across Missouri are seeing massive revenue losses after stopping elective procedures to protect hospital staff and the public during the coronavirus pandemic.

Missouri Hospital Association CEO Herb Kuhn said state hospital revenues are off by more than 50 percent. Kuhn said Missouri hospitals are losing $32 million of revenue a day, or nearly a billion dollars a month.

"Many of these changes were already within Mosaic's long-term cost reduction plan to address the ongoing Medicare reimbursement reductions and the lack of Medicaid Expansion in Missouri," says Dr. Laney. "At the end of the day, we have a duty and an obligation to our neighbors in northwest Missouri to be good stewards with our finances to ensure Mosaic continues to be here for generations to come."

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