Goodall Hospital in Sanford is cutting pay and benefits for all employees to avoid further layoffs.
The pay cuts, which go into effect Sunday, range from 4% for hospital staff and 10% for upper management to 20% for hospital President Darlene Stromstad, according to the Journal Tribune. The hospital also is cutting one week of employees’ vacation time and eliminating its 1% contribution to employee pension plans, the paper reported.
Stromstad told the Journal Tribune the pay cuts are in response to increases in bad debt and charity care — which has doubled to 10% of revenues, or about $6 million per year — and a lag in MaineCare reimbursements. By the end of May, she said the hospital will be owed roughly $11 million in MaineCare reimbursements from as far back as 2006.
In January, the hospital laid off the equivalent of 30 full-time employees to save $1.6 million, the paper reported. With 925 full- and part-time employees, the 58-bed hospital is the largest employer in Sanford.
