Facing what it calls “unprecedented financial challenges,” VUMC will need to make up for a $20 million deficit by June 30, the end of its fiscal year.
VUMC employees will be able to earn vacation time they have already earned, but they will be barred from earning vacation time from April 1 to June 30. That strategy, which applies to the hospital’s more than 14,000 employees, is expected to save almost $12 million.
The hospital is also cutting compensation for VUMC leadership that is based on performance metrics this fiscal year, according to the report. It does not plan to implement pay increases July 1 either, as it strives to cut an additional $30 million for a total budget reduction of $50 million over two years.
VUMC previously announced a systemwide hiring freeze for positions not tied to patient care. That freeze is in effect until June 30 and was designed to avoid layoffs, according to the report.
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