For instance, employees in management and senior administrative positions will see a portion of their pay tied to the medical center’s overall financial results, according to a letter by Jeff Balser, MD, PhD, the vice chancellor for health affairs and dean of Vanderbilt University School of Medicine. According to a report by The Tennessean, five percent of their base salaries will depend on VUMC’s financial performance in fiscal year 2015.
Also, starting July 1, VUMC employees will be not be able to roll unused paid time off into the next fiscal year.
These changes are part of the hospital’s larger effort to eliminate $250 million from its operating budget. In 2013, VUMC laid off more than 1,330 employees to further these efforts. However, in his most recent letter, Dr. Balser reassured employees that further workforce reductions are not planned.
“I want to reassure you that as we continue through this period of rapid change and immense financial challenges, every step we are taking is necessary,” Dr. Balser wrote.
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