SE Minnesota News

The Mayo Clinic will be cutting costs with furloughs and pay reductions in an effort to prevent a $3 billion loss from the coronavirus pandemic, but still expects a shortfall of $900 million. 

Since the start of the COVID-19 pandemic, the Mayo Clinic has shifted its focus on the coronavirus, which has resulted in a decrease of income, according to The Bemidji Pioneer. While the company will not be laying off any employees, it will be cutting costs by furloughing employees and making reductions in staff pay. 

The plan to cut costs will ensure the Mayo Clinic will still have quality care, research and education, The Bemidji Pioneer reported. 

"We're committed to the well-being of our staff," Jeff Bolton, Mayo's chief administrative officer, told The Bemidji Pioneer. "We're going to make some difficult decisions and do it with compassion."

Most of cuts will be from payrolls. Executive leadership in the company will be taking 20% of these cuts, Bolton told The Bemidji Pioneer. This will save $1.4 billion. The other $1.6 billion will be coming from terminating contracts and pausing projects, according to The Bemidji Pioneer.

But Minnesota Sen. Carla Nelson announced on Facebook she is looking for state relief for the Mayo Clinic. 

"The Mayo Clinic has been an essential part of the fight against the coronavirus," Nelson said on Facebook. "Given their importance right now, I am seeking state financial relief for Mayo for this short time to help with some of the cost-cutting measures they announced today. Support for Mayo now will be in the long-term best interest of our state."

In a press release, Nelson also said the Mayo Clinic has been a leader for advancing coronavirus treatments in Minnesota and continues to step up to help the state during the pandemic. 

“Mayo isn’t just the largest private employer in the state; it is one of the most important organizations in the fight against the coronavirus. When the state had a huge backlog of tests, Mayo stepped up and cleared it out," Nelson said in the release. "They are a world leader advancing treatments for the virus, like convalescent plasma therapy, antibody testing, and vaccine development. If anyone is going to get us out of this crisis, it will be Mayo."

Not only will state relief help the Mayor Clinic, but it will help the state recover faster from the financial crisis, according to the release. 

“Mayo has stood tall in service to our state and has not asked for financial support for these actions. In order to recover from this crisis faster, I am seeking state financial relief for Mayo for this short time," Nelson said in her release. "Support for Mayo now will be in the long-term best interest of our state as they tackle the coronavirus pandemic, inspire hope, and contribute to our health and well-being by providing the best care to every patient.“