Carthage Area Hospital places 20 percent of workforce on unpaid leave
WATERTOWN, N.Y. (WWNY) - Carthage Area Hospital announced Friday that it has reduced its staff by 20 percent through unpaid leave due to the financial burdens caused by the COVID-19 pandemic.
Other measures to save money include temporary salary reductions for some and reduced work hours for others who are still on the job.
A total of 83 employees will be affected.
The hospital’s senior team, managers, and medical staff have agreed to salary reductions, officials said.
Employees were notified on Wednesday, Thursday, and Friday.
“This was a difficult decision that was not made lightly. It will ensure the long-term viability of
the hospital during this turbulent time we’re all experiencing. We need to remain financially
stable. This is designed to be a temporary solution while continuing to meet the health care needs
of the community, said Rich Duvall, Carthage Area Hospital CEO.
Officials said many U.S. hospitals and health systems have experienced a drastic decline in patient volumes due to the reduction of elective surgeries and procedures, which has taken a harsh hit on annual revenue.
In the interim, Carthage Area Hospital plans on utilizing some employees in other areas of need.
This may be necessary for staff to serve in a different capacity to best serve patients.
The hospital has also submitted an application for the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) PPP (Paycheck Protection Program) Loan Program.
Employees on unpaid leave will not experience any disruption in their health insurance benefits.
The length of unpaid leave is undetermined.
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