Envision Healthcare said it has cut salaries of its senior leaders in half and plans to cut salaries of nonclinical employees and furlough them.
Envision, one of the nation's largest provider groups, said the financial moves are being made to preserve its ability to care for patients after the COVID-19 public health crisis ends. The moves were partially attributed to a decrease in patients at all of Envision's practices and specialties, including declines of up to 70 percent in areas such as ambulatory surgery and anesthesia services.
"The healthcare sector has been fundamentally destabilized, but Envision Healthcare has answered the call to care for patients during this crisis," Jim Rechtin, president and CEO of Envision, said in a news release. "In some areas, hospitals and our clinicians are seeing numbers of COVID-19 patients skyrocket. But everywhere else, patients are staying home. This is a hard situation, because in the places where patients are staying home, doctors have fewer appointments and shifts, and thus reduced revenue.
"Where they lose their normal billing revenue, medical groups are losing money. Where medical groups are losing money, they have to reduce salaries and furlough workers. Unfortunately, we are no different," the CEO said.
Envision said clinical pay will be reduced in services with low patient volumes, and performance-based bonuses and clinician profit-sharing will be delayed until the fall. Additionally, the company will temporarily suspend retirement contributions, merit increases and promotions for all employees. It also has halted capital expenses deemed noncritical.
Envision has provided staff and equipment to support local hospitals and deployed telehealth platforms during the pandemic.