Iowa City-based University of Iowa Health Care said it is offering a one-time success-sharing payment to eligible employees in appreciation for their participation in various cost-saving initiatives during the COVID-19 pandemic.
The one-time payments will be at a rate of 3 percent of the employee's salary. They will be made in the fall (Sept. 1 at the earliest) and will be included in workers' paychecks.
"UI Health Care was able to overcome the financial challenges brought by the pandemic and ended the fiscal year in a stable financial position. This means that we are now able to show our appreciation by providing a one-time success-sharing payment to all eligible employees," health system spokesperson Jennifer Brown told Becker's.
University of Iowa Health Care has about 12,000 employees who are eligible for the payment. Workers participated in short-term cost-saving measures from July 2020 to June 2021 to ease financial pressures related to the public health crisis, according to the health system. The measures taken by University of Iowa Health Care included a 90-day hiring freeze and asking workers to take unpaid leave or give back vacation hours.
"Like most healthcare organizations, our financial footing was very uncertain last year. We have come so far since then," Suresh Gunasekaran, CEO of University of Iowa Hospitals & Clinics, said in a news release. "The pandemic has shown how truly dedicated our team is and what we can do when we come together. It is because of our employees that we were able to overcome the financial challenges brought by the pandemic. We are so pleased to be in a much better place today, and to be able to share our organization's success directly with our employees in recognition of their commitment to caring for patients amid enormous obstacles."
University of Iowa Health Care comprises UI Hospitals & Clinics, UI Stead Family Children's Hospital, UI Roy J. and Lucille A. Carver College of Medicine and UI Physicians. Overall, the enterprise has about 16,000 employees.