Advertisement

Mayo Clinic announces payroll, spending cuts for the remainder of 2020

Mayo says hourly employees will see their pay rates maintained at current levels, but some hourly employees will be subject to furloughs.
Updated: Apr. 10, 2020 at 7:01 PM CDT
Email This Link
Share on Pinterest
Share on LinkedIn

ROCHESTER, Minn. (KEYC) — Facing a $3 billion shortfall, Mayo Clinic is rolling out a plan of spending reductions, including payroll cuts, that will impact many of the healthcare providers 70,000 employees across all of its sites, including Mayo Clinic Health System sites and the campuses in Rochester, Florida and Arizona.

Mayo says about $1.4 billion in savings will be achieved through payroll reductions. Mayo’s executive leadership will take the largest cuts in percentage terms, 20%, starting this month.

Those cuts will be followed in May by cuts to salaries for senior managers (15%) and other salaried employees (7%). Those reductions will be effective through Dec. 31.

Mayo says hourly employees will see their pay rates maintained at current levels, but some hourly employees will be subject to furloughs.

“Mayo Clinic staff are doing extraordinary work leading in the response to the COVID-19 pandemic. We are proud of and committed to our staff and our communities as they come together to fight this global health crisis. Mayo Clinic is facing unprecedented challenges as a result of these circumstances, including a financial impact that requires significant adjustments to our operations. The decision to proactively postpone elective patient care was the right one, but it eliminated the majority of our revenue at the same time we are making critical investments to develop and expand testing, conduct research to stop the pandemic and re-align our facilities and care teams to treat COVID-19 patients. Mayo Clinic is taking necessary steps to reduce expenses but additional measures are needed to ensure that we can emerge from this situation in a stable position. While we were able to protect full pay and benefits for our employees through April 28, temporary furloughs of some staff and salary reductions will be required after that time. We will work with our teams in the coming weeks to ensure that our staff are supported, that the duration of this disruption is as limited as possible, and that we are ready to ramp up quickly and resume full operations when it is safe to do so.”

Mayo will maintain pension and health benefits for all employees who currently receive them as well as pick up employees’ portions of their health care premiums.

Mayo says the cuts are being made without lowering the quality of care, research and education Mayo provides. No layoffs are planned.

Copyright 2020 KEYC. All rights reserved.