Vidant cutting employee pay, benefits because of COVID-19
More financial woes for Eastern Carolina's largest hospital system.
Vidant Health says it is implementing furloughs, reducing salaries, and cutting employee benefits at its hospitals because of COVID-19..
The health system says while a growing number of patients rely on Medicare and Medicaid, challenges have been intensified by the coronavirus pandemic. Vidant says it is experiencing "a significant decrease in volumes which is impacting revenue."
Effective Sunday, Vidant says it will reduce pay for executives and all employees. The system will be implementing furloughs, salary reductions, and schedule/shift adjustments. It also will be cutting employer contributions to retirement plans by 50%.
Vidant says the salary cuts will be tiered according to the level of the position, with executives taking the most in cuts.
For example, the CEO's pay will be cut by 25%, administrators 10%, managers 5%, and exempt team members 2.5%.
In February, the system laid-off nearly 200 workers because of a budget shortfall.