To offset millions in lost revenue from the pandemic, at least 1,200 physicians, faculty and researchers at University of Florida's College of Medicine in Gainesville will lose out on their usual year-end incentive pay, according to The Gainesville Sun.
UF Health physicians and faculty typically receive incentive pay on top of their base salary. The bonus pay is often given to physicians for picking up additional work or executing excellent services, while other times it helps readjust for the cost of living in the area.
UF Health officials said the bonus pay will not be coming this year, as it would worsen its financial position.
"Any distribution of incentives would come with the effect of deepening our financial hole and stalling any forward momentum gained prior to the pandemic," Adrian Tyndall, MD, UF College of Medicine's interim dean, wrote in an email to employees this week, according to The Gainesville Sun.
UF College of Medicine lost about $11 million in revenue from the pandemic, and UF Health's Shands Hospital saw a $46 million shortfall in its operating budget in fiscal year 2020, according to the report.
Dr. Tyndall told The Gainesville Sun the incentive payment cuts avoid the "Draconian" option of furloughing employees.