Arkansas Children’s Hospital (ACH) is making significant cuts throughout its healthcare system as a result of the COVID-19 pandemic.
The hospital system announced that it will be eliminating 42 positions. Of this total, 17 positions were vacant but the remaining will impact employees, who have reportedly had been informed ahead of the announcement.
In addition to the job eliminations, ACH will be eliminating “select contracted services.” A company news release did not specify which services would be eliminated.
Although ACH is cutting down its workforce in the wake of COVID-19, “strategically essential positions” could be hired for, but these hirings will require the approval of an executive vice president.
Executive staff will see a hit to their compensation during the 2021 fiscal year. There will be a 20 percent reduction in executive compensation and a 10 percent reduction in director compensation for this time period. The hospital is also eliminating the traditional merit pay program for all staff through June 2021.
ACH will also be reducing expenses in other areas. It will reduce all external travel costs through June 2021 and is imposing a 50 percent reduction in minor equipment expenditures and 30 percent reduction in capital expenditures, both through June 2021.
“We are collectively living through the most difficult health crisis of our lifetime. As a direct result of the impact of COVID-19, Arkansas Children’s has experienced a decrease in patient volumes and a reduction in workload for some team members. There is every indication that these changes in volume and workload will last through June 2021,” the company said in a statement.