Thomas Jefferson University plans to cut 500 positions through attrition, freeze pay of top executives and stop retirement plan contributions for a year as the medical system, one of Philadelphia’s largest employers, struggles to stem losses.
Jefferson Health, which expanded from three to 14 hospitals from 2015 to 2018, has been hit extra hard by COVID-19 shutdowns that have delayed elective surgery.
“The reality is, unless addressed, the pandemic will dramatically affect our ability to fulfill our mission,” wrote Stephen K. Klasko, president of the university and chief executive at Jefferson Health, in an internal email to staff. Jefferson logged an operating loss of $298.71 million in the year ended June 30 even after it received $320 million in government grants to help it withstand the financial devastation of COVID-19.
Still, Klasko adds that he is determined to keep upgrading