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We know that the unprecedented financial challenges related to the COVID-19 response have been tough to navigate, and we greatly appreciate everyone’s hard work over the past weeks and months. Throughout all of this, we have done our best to be transparent in our communications with you. We are writing with another update on our financial situation and some of the difficult next steps we will need to take to ensure that UW Medicine can continue to support the excellence of your work and provide the best care possible for our patients.

As we shared back at the beginning of May, we are currently facing a significant financial impact and have been working quickly on a number of actions to address this reality. Through these actions, we have identified savings of approximately $92 million in addition to the approximately $180 million of secured federal funds and state commitments. We have also restarted elective surgeries and procedures and in-person clinic visits, which are critical to our recovery efforts, and continue to seek more federal support to help offset our losses. Despite these efforts and the sacrifices that many of you have made, the unfortunate reality is that more actions need to be taken at this time.

Over the past few months, we have undertaken a review of programs across all of our hospitals and clinics to identify cost efficiencies without compromising the care for our patients. As part of this review, we considered expediting work that had been explored in the past as well as new plans based on how COVID-19 has shifted the ways in which we serve our patients, for example, via telehealth. The changes identified will lead to the reorganization of work and consolidation of programs, including 100 staff layoffs. Examples of areas that will be restructured include: UWMC Therapies, Lab Medicine/Phlebotomy, Population Health, Enterprise Records and Health Information, Information Technology (non-D1) and voluntary Psychiatric Care. These changes will result in approximately $11 million in savings, with additional savings expected as operational efficiencies are realized. The majority of those impacted by layoffs and department changes have been notified, with all notifications to be completed in the next two weeks.

The actions announced today were not taken lightly, and we sincerely regret the hardship that they will create for those directly impacted. These actions are necessary, however, to help us address the current reality and best prepare us for the future.

Despite the challenges that we have faced, we are proud of the way that our community has come together to respond to the COVID-19 pandemic and subsequent financial crisis, and we remain confident that we will emerge stronger than ever as a health system continuing to lead and re-imagine how we deliver care. As this process progresses, we are committed to continued transparency.

UW Medicine plays a critical role in our community with a singular mission to improve health for all people. Thank you for all you are doing to care for our patients and our community.


Lisa Brandenburg 
President, UW Medicine Hospitals & Clinics

Timothy H. Dellit, MD
Chief Medical Officer, UW Medicine
President, UW Physicians