Intermountain pauses 401(k) match

Salt Lake City-based Intermountain Healthcare has suspended its matching of employee 401(k) contributions, citing a significant decrease in patient volume and revenue during the COVID-19 pandemic.

The suspension will last for at least the second half of this year, the health system said. The change does not affect other employee benefits.

Intermountain will also only replace a position left vacant from an employee's voluntary departure if the position is deemed critical for patient care. The health system also said it will consider whether to delay some construction projects and other major expenditures.  

Intermountain said it has not had to lay off or furlough employees — and provided a scheduled annual pay increase for employees in April — but its cost-cutting is necessary in response to COVID-19 challenges.

"We believe these actions will address current financial issues and help us to maintain a stable and sustainable model to provide for the needs of patients, our employees and our communities," Rob Allen, Intermountain's senior vice president and COO, said in a news release.  

From March through May, compared to the same period of 2019, Intermountain reported a 47 percent reduction in surgeries at its hospitals, a 26 percent decline in emergency room visits, a 20 percent drop in inpatient admissions and a 31 percent decline in clinic visits. The health system said it saw a reduction of nearly $435 million in revenue for hospitals and clinics. Although Intermountain has resumed many medical services, the trend of a decrease of patient volume and revenue continues. 

 

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