Cape Cod Healthcare CEO Explains Reasons for Furlough

HYANNIS – Cape Cod Healthcare President and CEO Michael Lauf is providing details about about the decision to furlough employees amid the coronavirus pandemic.

The furloughs of around 600 employees across the healthcare system begin on Sunday.

While Lauf feels like the Cape has been relatively successful in their fight against the virus, he said a decision had to be made as Cape Cod Healthcare’s revenue stream continues to drop.

“The financial losses that this healthcare system and this community are taking are historic. Every single facet of the health system has been impacted. I can’t stress it enough,” Lauf said.

Cape Cod Healthcare projects to lose $74 million through the end of the fiscal year in October. Lauf called these losses “unsustainable.”

Most departments within the system will be impacted by the furloughs, Lauf said, with the exception of those fighting on the front lines of the pandemic. Lauf said that benefits to furloughed employees will be paid out the same.

Salaries for executive positions, including Lauf’s, are also being reduced until the end of the fiscal year. Reductions will range anywhere from 12.5% to 5%.

Lauf said that the system was able to go as long it could possibly go without making this decision.

The only federal aid received by Cape Cod Healthcare to this point was included in the initial round of funding offered through the CARES Act.

Lauf said that he has been speaking to Governor Charlie Baker, Congressman Bill Keating, and other state leaders regarding more aid.

“We compromised our entire model to be there for the government, to be there for our citizens, and to be there for our community, and to be there for our employees,” he said, “and I think it ought to be recognized.”

Lauf said that he understands how hard the situation is, but he is looking to see how Cape Cod Healthcare can rebound going forward.

About Brendan Fitzpatrick

Brendan, a recent graduate from the University of Massachusetts Amherst, is one of the newest members of the NewsCenter team. When not on the beat, you'll probably find him watching Boston sports.
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