The freeze will affect everyone at Erlanger, including executives and physicians, and is expected to save the system $5.4 million, according to the report.
This is not the only benefit cut Erlanger employees have experienced recently, as the system changed its pension plan to be more similar to a 401(k), increased retirees’ health insurance contributions and altered paid leave, the Times Free Press reported.
Erlanger is looking for major savings from these moves, as it is currently facing a loss of $3.8 million this fiscal year and anticipated spend of $91 million on uncompensated care this year.
“We’re reacting to a much bigger issue. This is what’s happened to Erlanger, but it’s also happening to other hospitals,” CEO Kevin Spiegel said in the report. “What I really don’t want to see happen is huge layoffs and service cuts. But [reimbursement] cuts on top of a growing uncompensated care pool are not sustainable.”
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