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University Hospitals reduces pay and hours for 4,100 caregivers not directly involved in patient care

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Posted at 11:11 AM, Apr 22, 2020
and last updated 2020-04-22 11:29:17-04

CLEVELAND — As a result of financial impacts of the COVID-19 pandemic, University Hospitals Cleveland Medical Center announced for an initial period of 10 weeks, it will reduce hours and pay by 20% for about 4,100 caregivers who are not directly involved in patient care, the hospital said in a release.

The hospital system said executives, directors, nonclinical managers, department chairs and division chiefs will all have their pay reduced while working their regular schedules.

“Our most valuable resource is our people. Our approach is to do what we can to assure that UH caregivers do not go without a paycheck and that we preserve the talents and character that define our organization,” said UH Chief Executive Office Thomas F. Zenty III, in a news release. “We take these actions reluctantly and with deep appreciation for everything our caregivers continue to do to support the health and wellbeing of our communities.”

All full-time employees moving to reduced hours will maintain their eligibility for full-time benefits. Caregivers can use any accumulated PTO and sick leave hours to continue pay for the days that are not worked.

In addition to cuts in hours and pay, University Hospitals said matching contributions to 403 (b) and 401 (k) plans are suspended beginning the first pay in May, with planned merit pay adjustments delayed until the end of the calendar year.

University Hospitals said this decision comes after reviewing financial models, costs, and capital expenditures. So far in Ohio, it’s estimated hospitals are seeing a financial loss of $42 million per day and spending $5 million per day on increased costs of supplies.

The hospital has assembled teams to prepare for a swift resumption of full services to the community.

“We remain positive that this will occur sooner rather than later, and we will be positioned to serve our community,” Zenty said.

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