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

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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.

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