Tennessee hospital cuts employee PTO in half

The board of Erin, Tenn.-based Houston County Community Hospital has cut in half the amount of paid time off employees can earn, according to The Leaf-Chronicle.

The PTO change will help the financially struggling hospital cut costs and save a total of $108,000 per year. "This is a very liberal PTO for a group losing a million dollars a year," said CEO Scott Barber.

In October, Mr. Barber presented the plan to board members, but they didn't take action. However, the board unanimously approved the plan during a Nov. 18 board meeting.

The new PTO plan will begin in 2016. Employees with up to five years of service will get two and half weeks of PTO. Those with five to 10 years of service will receive three weeks of PTO, and those with over 10 years will have three and a half weeks of PTO.

A similar PTO policy was implemented at Parsons, Tenn.-based Decatur County General Hospital, where Mr. Barber also serves as CEO. The hospital saved a total of $178,000 annually by cutting employee PTO.

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