Physician Compensation and Benefits Reduction
Physician Compensation/Benefits Reduction
Like many other workers in healthcare, physicians are not exempt from becoming exposed to the affects of compensation cuts and schedule workload reductions. Below are several organizations who are implementing cuts to physician’s compensation in an effort to shore up financial stability due to operational shortcomings stemming from the Covid-19 pandemic.
- Per the Boston Globe, effective April 1, employer is suspending employer contributions to the retirement plan for doctors in the group and ER doctor’s bonuses are being withheld.[1]
- Cincinnati-based Mercy Health is decreasing salaries depending on productivity decreasing, base draw commensurate to 70% of historical average productivity.[2]
- Intermountain Healthcare to cut pay to physicians by 15%, most doctors on work-based productivity agreements will see a pay cut. However, these pay cuts will only be to a limited number of physicians and for the month of June.[3]
- University of Virginia Medical Center will be cutting some physician compensation by 20%.[4]
- Envision is reducing clinical compensation – exact amount unknown.[5]
- HCA Healthcare, Good Samaritan Hospital and Regional Medical Center in San Jose cutting physician’s pay, only allowing doctors to earn up to 7-% of their base pay for normal scheduled hours for up to seven weeks.[6]
- Contracted ER doctors, including those at Houston Methodist, are reporting their salaries being cut by as much as 25% through direct pay cuts, reduced hours, or both per the Houston Chronicle.[7]
- Stanford Health Care is reportedly cutting physician’s wages by 20% for ten weeks, beginning April 21.[8]
- Associate physicians at Corvallis Clinic in mid-Willamette Valley in Oregon, a Neurology Clinic, will be taking a 40% cut from April until June.[9]
- According to the NY Time, physicians at Oneida Health Hospital in New York will be taking a 20% pay cut.[10]
- UW Health and UnityPoint Health, which owns Meriter Hospital in Madison will be implementing 15% pay cuts for UW doctors.[11]
- Doctors working for the Mayo Clinic will be taking a 10% pay cut.[12]
Source:
Pinnacle Healthcare Consulting.
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[1] https://www.bostonglobe.com/2020/03/27/metro/coronavirus-rages-doctors-hit-with-cuts-compensation/ [2] https://www.wcpo.com/news/local-news/i-team/cincinnati-doctors-emts-face-pay-cuts-in-face-of-covid-19-pandemic [3] https://www.sltrib.com/news/2020/03/30/intermountain-is-cutting/ [4] https://www.dailyprogress.com/news/local/losing-3m-a-day-uva-health-furloughs-employees-cuts-executive-and-physician-pay/article_b69f574b-1b11-57c8-a85d-81121e28cf8d.html [5] https://www.fiercehealthcare.com/practices/envision-healthcare-cuts-exec-physician-compensation-as-volumes-drop-amid-covid-19 [6] https://www.mercurynews.com/2020/04/09/coronavirus-made-doctors-and-nurses-indispensable-so-why-are-hospitals-cutting-their-pay/ [7] https://www.houstonchronicle.com/news/investigations/article/As-front-line-emergency-doctors-risk-all-to-fight-15222683.php [8] https://www.paloaltoonline.com/news/2020/04/24/stanford-health-care-to-cut-workers-wages-by-20 [9] https://journals.lww.com/neurotodayonline/blog/breakingnews/pages/post.aspx?PostID=939 [10] https://www.nytimes.com/2020/04/03/us/politics/coronavirus-health-care-workers-layoffs.html [11] https://madison.com/wsj/news/local/health-med-fit/uw-health-unitypoint-health-cut-costs-salaries-from-covid-19-ssm-health-eyeing-cuts/article_8592eb93-4b5e-5de5-bf35-9bb304432b9c.html [12] https://www.medcitybeat.com/news-blog/2020/mayo-clinic-spending-cuts
