Grays Harbor Hospital in Washington State Slashing Salaries, Anticipating Layoffs

Grays Harbor Community Hospital, a large non-profit hospital in Aberdeen, Wash., is cutting salaries across the board to patch holes in its budget from unpaid medical bills.

The hospital faced a 23 percent increase in the amount of patient bills that couldn't be paid in 2011 compared to the previous year. To deal with what CEO Tom Jensen calls an "extremely challenging environment," Grays Harbor cut 10 percent from the salary of all administrators, managers and salaried staff, according to a KBKW News report.

"Everyone is tightening their belts, but we have to do more," Jensen said. "The next step is a system-wide restructure that will involve a difficult but necessary workforce reduction."

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