In 2017, the health system’s revenues exceeded expenses by $82.6 million, and its overall operating margin dropped to 3.2 percent from 5.2 percent the year prior.
“We started out the year knowing we had some challenges and there were a lot of headwinds,” St. Charles Health System CFO and Senior Vice President Jenn Welander told The Bulletin. “The countermeasures helped reset the organization … and the early indicators are saying the reset that we did was appropriate and put us on the right path.”
To increase cost savings, the health system implemented a 5 percent pay cut for employees who made above a certain salary threshold for six months. However, after examining the institution’s 2017 financials, officials ended the pay cut four months early.
A nine-month pay cut for executives remains in place, according to the report.
To access The Bulletin report, click here.
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