COVID-19: Olmsted Medical Center Temporarily Cutting Pay & Staff
Rochester, MN (KROC-AM News) - Olmsted Medical Center has announced some cost-cutting moves in response to the financial impact of the coronavirus pandemic on its operations.
The Rochester based healthcare provider is projecting a loss of $25 million from April through June. A news release says patient volumes at the Olmsted Medical Center Hospital and its clinics are down 60-70 percent due to the postponement of elective procedures.
“Due to many years of strong financial management and the excellent work of our employees in our organization over the years, we have been able to support all our employees and clinicians through the month of April. Despite our stable financial position, we understand that appropriate fiduciary measures need to be undertaken to ensure our ability to continue to serve our patients when this pandemic abates,” stated Olmsted Medical Center CEO Tim Weir.
OMC today announced it is temporarily reducing the salaries of the organization's president and CEO by 20-percent, effective next Tuesday. The pay for other senior administrators will be reduced by 15-percent. 7.5 percent pay cuts will take effect for OMC physicians, directors, managers, and physician administrative leaders on May 12th.
The organization is also planning for temporary staff reductions through furloughs to help address the projected revenue loss.
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