UTICA, N.Y. – The CEO and other members of leadership at Mohawk Valley Health System will see 5 – 15% pay cuts due to revenue lost during the coronavirus pandemic.
President and CEO of MVHS, Darlene Stromstad, sent a letter informing staff of the decision, as their initial 30-day workforce plan comes to a close.
Stromstad says MVHS is losing around $600,000 per day as sources of revenue have diminished. She says the ER volume is at 35% of normal, physician practices are at 65%, and urgent care at about 25%.
“Like much of Central New York, investing in our surge plan and suspending elective surgeries has come at a cost to our organization. Our volumes for all services are down by half - which all the hospitals in Central New York are experiencing. Our losses average about $600,000 per day. Even with the federal stimulus check of $9 million we received last week, we are projecting a 90-day loss (March, April and May) of $25 million,” Stromstad wrote in the letter.
In an effort to recoup some of the losses, the pay cuts will be in effect for the next six months, including Stromstad’s 15% pay decrease. Physicians will see 10% decreases, while nurse practitioners and physician assistants will see 5% reductions in pay.
Vice president of marketing and communications Caitlin McCann released the following statement on Monday:
"MVHS is not looking at layoffs as part of the cost recovery measures at this time. However, other measures such as implementing furloughs, cutting out all travel and events, closely controlling overtime and instituting a hiring freeze are being considered."
MVHS says it is working on a new plan for the coming months.
“Our goal is to have a firm plan of cost recovery measures in place in the near future and then begin to reopen and rebuild services, hopefully in a few weeks (if the Governor has lifted his ban on non-essential, elective surgeries and procedures). Our objective is to achieve a target of at least 80 percent of our volumes by the end of the summer,” Stromstad added.