Employees at Boulder (Colo.) Community Health will take a 10 percent pay cut or have their hours cut for the next six months, the organization announced July 7. Executives at the organization will see their pay cut 20 percent.
The pay cuts, which go into effect July 19, are part of the hospital's plan to respond to financial pressures caused by the COVID-19 pandemic.
Boulder Community Health said that it is aiming to reduce expenses by $3 million per month from August through the end of the year.
The cost-cutting plan also includes mandatory vacation days, canceling market pay raises and suspending the employer match to the employee retirement plan.
"We need to take significant actions to lower our costs and create a financial structure that is economically sustainable while preserving our most valuable resource — our employees — as much as possible," said Boulder Community Health President and CEO Robert Vissers, MD.
The hospital already had furloughed a portion of its staff to help offset some of the revenue losses due to the suspension of elective procedures.