Baylor Scott & White Health to lay off 1,200 after reporting 'drastic drop' in visits

Baylor Scott & White Health will lay off 1,200 employees and furlough an undetermined number more as it responds to a “drastic drop in visits” during the early days of the coronavirus pandemic.

Even as the number of coronavirus cases started to rise across the state, the not-for-profit health system suffered revenue losses when non-essential surgeries and other procedures were suspended, Baylor Scott & White said in a May 26 statement.

“Now, as early data is revealing the significant economic implications of the pandemic on Texans and the operational and financial implications on our health system, we are implementing changes to remain prepared and able to adapt in continued unpredictability,” the health system said of the layoffs.

Fifty hospitals and more than 800 patient care sites fall under the Baylor Scott & White umbrella, according to its website. The health system employs more than 49,000 people.

It was unknown to what extent individual hospitals within the system would be affected by the layoffs and furloughs, system spokesperson Matt Olivolo said.

The layoffs represent 3% of the hospital system’s workforce, according to the Baylor Scott & White statement. The health system was also expected to temporarily reduce senior executive salaries.

Despite the severe early dip in traffic, hospital admissions have returned to 92% of pre-coronavirus levels, according to the system. Operating-room cases are now at 97% of their levels before the pandemic.

“While patient volumes are steadily increasing, we remain in a financial recovery period during which we must plan for continued unpredictability,” the health system said.