Doctors and nurses face pay cuts of upto 20% in the face of coronavirus as other hospital work dries up
A major medical staffing firm, Alteon Health, is reportedly cutting the pay and other benefits of doctors and nurses treating the novel coronavirus patients in the country. The decision was taken by the company after the number of patients being treated for issues not related to Covid-19 decreased dramatically, reports state.
Alteon Health made the pay cut announcement in an email sent to its employees on Monday, March 30. The firm supplies ER physicians and other medical staff to hospitals across the country. According to the new pay structure announced, administrators, some of whom are trained clinicians, will get a pay cut of 20 percent, clinicians' hours will be reduced and 401(k) matches, bonuses and paid time off have been suspended, according to the Daily Mail. Alteon Health supplies staff to hospitals like Washington Adventist Hospital and University Hospital Cleveland Medical Center.
The firm's CEO, Steve Holtzclaw, in the email, wrote: "Despite the risks our providers are facing, and the great work being done by our teams, the economic challenges brought forth by COVID-19 have not spared our industry."
He added that although this was a temporary measure, it is not yet certain for how long this might last.
Reports state that health insurance claims have also been delayed by certain companies as they adjust to new ways of working remotely. Holtzclaw, in the email, also claimed that other companies like his would also be taking similar measures despite relief available from the $2 trillion stimulus package passed by Congress last week.
Tenet Healthcare, in Dallas, Texas, reportedly also implemented similar measures on 401(k) benefits and said that spending on contractors and vendors was being reduced. The news comes after workers at multiple medical centers in Massachusetts were told they would face cuts in their salaries. Beth Israel Deaconess Medical Center in Boston also announced that it was putting a stay on accrued pay for ER doctors.
TeamHealth, a countrywide physician practice, in a statement to ProPublica, said: "We are not instituting any reduction in pay or benefits. This is despite incurring significant cost for staffing in anticipation of surging volumes, costs related to quarantined and sick physicians, and costs for PPE as we work hard to protect our clinicians from the virus."
While an anonymous medical director told the outlet: "Every day I'm in county and federal emergency meetings. This is besides seeing patients. I'm doing more hands-on work right now than ever before. I'm getting calls 24/7 from the hospital administration, the county management team. I have not had a day off in over two weeks. And I'm working all this for 20% less."
"His decision is being made not by physicians but by people who are not on the front lines, who do not have to worry about whether I'm infecting my family or myself. If a company cannot support physicians during the toughest times, to me there's a significant question of integrity," the medical director added.
The staff of Alteon Health said that they were disappointed with the company's decision. An ER doctor employed by the firm told ProPublica in a text message: "We all feel pretty crestfallen. I did expect support from our administrators, and this certainly doesn't feel like that."
Coronavirus cases in the United States have reached 189,633 with over 4,000 reported deaths in the country alone. The worldwide cases of the deadly virus stand at 874,081 with at least 43,291 confirmed deaths.