Arizona hospital gets bailout after execs take pay cuts

The state of Arizona is giving Santa Cruz Valley Regional Hospital $3.6 million to keep its doors open, according to the Arizona Republic.

In April, Green Valley, Ariz.-based Santa Cruz Valley Regional warned it would close without additional funding from the state. Like many hospitals across the U.S., Santa Cruz Valley Regional is facing a cash crunch after canceling non-emergency procedures to free up staff and supplies for COVID-19 patients. 

The state agreed to provide the additional funding with certain stipulations. While the hospital is receiving emergency state aid, no payments can be made to Santa Cruz Valley Regional's owners, investors, board members or consultants, and hospital executives must take a 20 percent pay cut and forgo any bonuses or other salary enhancements. The hospital will also be required to open its books to the state, quickly provide financial documents requested by the state, and remain in compliance with CMS license requirements, according to a letter obtained by the Green Valley News

Santa Cruz Valley Regional CEO Kelly Adams said the hospital's executive team has taken a 30 percent pay cut and agreed to the other terms laid out by the state. 

"Arizona is pleased to have come to an agreement with the Santa Cruz Valley Regional Hospital that ensures health care operations continue and protects taxpayers," a spokesperson for Arizona Gov. Doug Ducey, wrote in an email to the Arizona Republic.

More articles on healthcare finance:
Walmart returns relief aid meant for front-line healthcare providers
How much federal COVID-19 aid are hospitals getting? A state-by-state analysis
How CHS, Tenet, HCA and UHS fared in Q1

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