U of M projects $130-$230 million loss in health system

U of M logo_308130

Ann Arbor, Mich. (WLNS) — The University of Michigan Medical School Dean Marschall S. Runge is projecting a $130 to $230 million dollar loss in the university’s health system.

He is also predicting a $80 to $100 million negative loss in the medical school due to the coronavirus pandemic.

To combat the losses, his team introduced the Economic Recovery Plan to accrue $400 million in savings.

Some of the cuts in the plan include:

  • leadership salary reductions
  • the dean’s own salary cut of 20%
  • the dean’s direct reports, chairs and others leaders to take a salary cut of 5 to 15%
  • a freeze on salary increases in fiscal year 21
  • hiring freeze
  • 300 open positions will no longer be filled

For the full breakdown of cuts and furloughs included in the plan, visit the University of Michigan website here.

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.