One of the largest medical staffing companies in the U.S. will cut pay and retirement benefits for its physicians, nurses and administrative staff, according to ProPublica.
Although hospitals remain full and are in need of clinicians, Alteon Health is losing money because the facilities are canceling more lucrative elective procedures to prepare for a surge in COVID-19 cases.
"Despite the risks our providers are facing and the great work being done by our teams, the economic challenges brought forth by COVID-19 have not spared our industry," Steve Holtzclaw, Alteon Health's CEO, wrote in a memo to employees obtained by ProPublica.
The memo said that the company would reduce hours for clinicians, cut pay for administrative employees by 20 percent and suspend 401(k) contributions. Bonuses and paid time off will be halted.
In a separate memo to salaried physicians, Alteon Health said it would convert them to an hourly rate, which would result in a salary reduction, according to the report.
"It’s completely demoralizing," an Alteon clinician who spoke on the condition of anonymity, told ProPublica. "At this time, of all times, we’re putting ourselves at risk, but also putting our families at risk."
Alteon Health said it expects the cost-saving measures to be temporary, according to the report.