Vidant Health Announces Furloughs, Pay Cuts Due To COVID-19
A North Carolina-based health system is enacting furloughs, reducing salaries and cutting employee benefits at its hospitals because of the COVID-19 outbreak.
Vidant Health said in a news release on Wednesday that it's faced with challenges which have been intensified by the coronavirus pandemic, including a traditionally underserved population with a high burden of disease and a growing number of patients relying on Medicare and Medicaid. Those issues have combined to impact the system's revenue, the news release said.
Effective April 26, Vidant said it will reduce compensation for executives, as much as 25% for CEO Dr. Michael Waldrum, and down to 5% for managers.
Vidant also said it will be reducing employer contributions to retirement plans by 50%.
"It's important we continue to distance ourselves, wash our hands and to do all of things that will help prevent spread of this virus," Waldrum said. "This crisis is far from over, but the things we are doing now will continue to make our ability to respond manageable."
In February, the system laid-off nearly 200 workers because of a budget shortfall. Vidant Health has more than 1,700 beds to serve more than 1.4 million people across 29 counties in eastern North Carolina.