Chattanooga, Tenn.-based Erlanger Health System cut 11 leadership positions June 13 to help offset financial damage caused by the COVID-19 pandemic, according to the Chattanooga Times Free Press.
Like other health systems across the nation, Erlanger took a financial hit due to suspending elective procedures, lower patient volumes and expenses related to the pandemic. Erlanger's net patient revenue declined by an estimated $35 million in April, according to the report.
The health system cut the 11 non-clinical leadership positions after making staff and pay cuts in March.
"We do not have perfect visibility in the future and recognize there is a lot of uncertainty surrounding coming months and years," Erlanger said in an internal staff memo about the recent layoffs, according to the report. "Because of these unpredictable times, we have an obligation to make difficult decisions to ensure Erlanger has a healthy and lasting future."
On June 11, the health system's board of trustees approved a new two-year contract with CEO Will Jackson, MD. Dr. Jackson, who makes $625,000 base salary per year, did not get an opportunity for an individual performance bonus or a raise, according to the report.
Access the full Chattanooga Times Free Press article here.
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