Natchez (Miss.) Regional Medical Center has announced a 10 percent pay cut for all employees and managers, according to a Daily Reporter report.
Upper and some middle management level employees will have their salaries reduced by 20 percent. Workers earning less than $9 an hour won't be affected, and none will drop to below $9 an hour as a result of the cuts.
The cuts are part of the hospital's efforts to strengthen its finances until its expected acquisition by a larger healthcare organization, according to the report. Natchez Regional filed for Chapter 9 bankruptcy in February. Natchez Regional CFO Charles Mock said liabilities of the hospital exceeded its assets by $3 million.
Last month, Community Health Systems, based in Franklin, Tenn., and the hospital signed a definitive agreement allowing CHS to acquire all of Natchez Regional's assets. The Adams County Board of Supervisors has unanimously approved the sale of 179-bed Natchez Regional to CHS. Under the agreement, CHS will pay $18 million in the sale — $10 million in cash up front and $8 million in prepaid city and Adams County ad valorem taxes.