AMMC to reduce salaries of executives, management; furlough some employees, due to COVID-19 impact

AMMC to reduce salaries of executives, management; furlough some employees, due to COVID-19 impact
Arkansas Methodist Medical Center officials said Wednesday they will be implementing several cost-saving measures due to COVID-19. (Source: KAIT-TV)

PARAGOULD, Ark. (KAIT) - A Paragould hospital on Wednesday announced they would be taking steps to reduce salaries as well as furlough some employees due to the COVID-19 pandemic.

According to a media release from Arkansas Methodist Medical Center, the hospital will be making the changes starting April 20.

“As this virus spreads throughout our communities, AMMC is experiencing a drastic reduction in routine and elective patient care. This decrease in volume incurs temporary financial losses,” officials said in the media release.

Hospital administrative officials met with employees Wednesday to discuss the issue.

“Effective April 20, AMMC will be taking steps across the organization that include reducing salaries of executive and management staff, requiring some employees to work reduced hours, suspending the hiring of non-essential positions and furloughing some employees,” Hospital President and CEO Barry Davis said. “Every employee is valuable at AMMC, and I am proud of the compassion they have shown towards the safety of our patients and staff during this pandemic. We will continue to monitor and evaluate these measures and rely on governmental guidance and industry best practices for the future decisions for AMMC.”

AMMC is the second area hospital in as many days to announce such a plan.

On Tuesday, St. Bernards announced it was taking several cost-saving measures including furloughs.

Region 8 News will have more details as they become available.

Copyright 2020 KAIT. All rights reserved.