Lancaster (Pa.) General Health System, part of Philadelphia-based Penn Medicine, canceled employee holiday bonuses because of rising costs, inflation and "radical changes" in healthcare, according to LNP | Lancaster Online.
A Dec. 16 memo from John J. Herman, CEO of Lancaster General, stated: "In light of today's challenging economic times, we must make choices that preserve our resources for things that strengthen the care we provide to our patients and our mission. As a result, we have decided to forgo previously announced plans for this year's employee holiday gift."
Employees had been slated to receive $25 gift cards.
Mr. Herman said rescinding the gift cards was a necessary short-term action to focus financial resources on patient care.