The University of Michigan could face $400 million to $1 billion in losses through the end of 2020 due to the coronavirus pandemic, said its president, Dr. Mark S. Schlissel, in a letter to the community on Monday.
Dr. Mark S. Schlissel
He called these loss projections “our best estimate” for the university, including all three campuses and Michigan Medicine, adding that “work that is available now under the current conditions may not be available in future months.”
Dr. Schlissel said the university’s revenue sources are stressed and the institution faces uncertainty in near- and medium-term enrollments.
“All of the university’s major sources of revenue are in question, and we have incurred large, sudden and unexpected costs due to the pandemic,” said Dr. Schlissel. “The expenses include the pandemic response at our hospitals and clinics, coupled with the loss of revenue from non-urgent medical procedures and outpatient clinics.”
Dr. Schlissel outlined measures the university is taking to preserve financial resources. These include the elimination of non-essential expenditures; hiring freezes; salary freezes; leadership pay cuts; voluntary staff furloughs and reduced hours; and the postponement of construction projects.