A federal bankruptcy judge has approved a dedicated fund that would pay 29 “key” employees of Meadowbrook, Pa.-based Redeemer Health approximately $700,000 combined to remain with the health system as it undergoes Chapter 11 bankruptcy, according to a report from the Philadelphia Business Journal. The fund’s approval comes after Redeemer filed for Chapter 11 protection Nov. 2.
Redeemer’s motion said the employees have skills and knowledge of the system’s critical operations, and that hiring replacements would be too costly. The fund, approved by U.S. Bankruptcy Court Judge Derek Baker Nov. 4, will go to the employees under the condition they stay with the system throughout the Chapter 11 process.
The retention plan has been divided into three tiers.
The first group includes seven employees responsible for core clinical operations, such as emergency and surgical services, pharmacy, patient safety, health information management, human resources and information technology. These employees will receive 20% of their base annual salary, which totals $244,839 for the group.
The second group includes 20 employees responsible for Redeemer’s clinical service lines and corporate support functions such as cancer care, imaging and diagnostic, therapy services, outpatient access, treasury and finance, human resources, orthopedics, women’s health, the long-term care and residential facilities, and home care and hospice operations. They will receive 15% of their base annual salary, which for the group totals $451,815.
The remaining two employees are responsible for provider credentialing and hospital administrative support. They will receive 10% of their base annual salary, which totals $11,830.
Redeemer’s attempt to maintain essential employees comes after several executives left the system in September, including CEO Greg Wozniak and CFO Kim Cummings.
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