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Vidant Health announces pay cuts, furloughs

(Photo: Morgan Newell, NewsChannel 12)
(Photo: Morgan Newell, NewsChannel 12)
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Vidant Health has that announced furloughs, as well as reductions in salaries and shifts, will go into effect on Sunday.

Officials say the challenges of healthcare in rural areas have been intensified due to coronavirus concerns, and a decrease in volume is impacting revenue.

To address the impact of the coronavirus, Vidant Health says it will cut compensation for executives and team members through furloughs, salary reductions and schedule adjustments. Officials say they are also reducing employer contributions to retirement plans by 50 percent.

Health leaders say salary reductions will be tiered based on position, as shown below:

  • CEO: 25%,
  • Chief and President: 20%,
  • Vice President: 15%,
  • Administrator: 10%,
  • Director: 7.5%,
  • Manager: 5%,
  • Exempt Team Member: 2.5%.

Vidant says it will continually monitor operations and adjust plans as needed.

“This is a financially challenging time for all health systems throughout the country. It’s even more challenging for rural health care where there hasn’t been enough effort made to address the unique realities we already face,” explains Michael Waldrum, MD, CEO of Vidant Health. “We must take these necessary actions to ensure Vidant is able to continue to meet its mission now and into the future.”

Vidant is grateful for the community’s adherence to the stay-at-home orders and social distancing. Officials say they are also thankful for their team's dedication amid the coronavirus pandemic.

“It’s important we continue to distance ourselves, wash our hands and to do all of things that will help prevent spread of this virus,” says Dr. Waldrum. “This crisis is far from over, but the things we are doing now will continue to make our ability to respond manageable.”

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