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University Hospitals Cuts Physician Pay During Pandemic

University Hospitals cut pay for more employees, citing increased costs and budget shortfalls caused by the pandemic.

In a statement, the hospital said it is cutting doctors’ pay by 7 percent. Clinical leaders and doctors with administrative duties will see a 10 percent pay cut.

University Hospitals had already reduced hours and cut pay for more than 4,000 employees in April.

The hospital did receive $85 million dollars from a federal grant known as the CARES Act, but according to the statement, it wasn’t enough to avoid pay cuts.

It says the cuts are temporary.

 

Here is the full statement from University Hospitals:

"Across the country, health systems incurred tremendous costs in preparing for a surge in COVID-19 patients, while also seeing lower revenues from the suspension of nonessential surgeries and procedures.

Here at University Hospitals, our increased costs for supplies, labor and operations directly related to the pandemic have reached in excess of $30 million. Across the nation, The American Hospital Association estimates health systems collectively are losing $1.4 billion daily.

The Governor’s recent orders allow patients to return to hospitals for their elective surgeries and procedures, UH has infection control protocols in place that meet and exceed CDC recommendations. Our first priority is always the health and safety of our caregivers, our patients and our community.

We continue to review all expenses and reduce capital and operating costs. Earlier this month, we temporarily reduced pay for executives, directors, nonclinical managers, department chairs and division chiefs by 10 - 20%, as well as time and pay for those in positions not involving direct patient care. UH is also grateful to have received $85 million through the federal stimulus program known as the CAREs Act.

Grants are very important, but these aren’t nearly enough to close the significant shortfalls created by the pandemic. It has become necessary to temporarily reduce compensation for clinical leaders by 10% and for physicians by 7% for clinical duties and 10% for administrative duties.

We are grateful to all of our caregivers and physicians for their commitment, understanding and dedication to our patients as we’ve continued to manage the COVID pandemic. We are confident that through proactive and responsible expense management, UH will remain strong and continue to advance the health and wellbeing of our communities throughout Northeast Ohio."

 

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