Sansum Furloughs Hundreds of Employees
COVID-19 Crisis Costs Santa Barbara Clinic Millions
Sansum Clinics CEO Kurt Ransohoff announced that hundreds of Sansum clinic employees have been placed on temporary furlough in response to unsustainable losses running into the millions of dollars caused by the COVID-19 crisis. None of the employees, Ransohoff stressed, are being laid off; all will retain their health insurance during the furlough. And for those experiencing financial hardship, Ransohoff added, Sansum will help defray the burden of employee contributions.
In response to the pandemic, Ransohoff stated, Sansum canceled many nonessential surgeries and other elective procedures. Many patients, he added, did not wait to be told and either canceled or rescheduled these visits. This move, he said, cost the clinic “hundreds of thousands of dollars a day.”
Ransohoff estimated the furloughs would affect one half of Sansum’s employee base, not counting the physicians. Translated, those employees will either be furloughed outright or experience a 20 percent cut in pay. Physicians are not included in this action, though many will experience a significant loss of income, as well, due to reduced demand for their services. Sansum currently employs roughly 2,000 workers.
