UPDATE: Mayo Clinic furloughs, pay cuts to be determined nationwide

About one-third of health system's 70,000 workers to face pay cuts, Mayo says
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ROCHESTER, Minn. (WKBT) – Mayo Clinic Health System is taking steps, including furloughs and pay cuts, to rein in expenses amid revenue losses resulting from the COVID-19 pandemic.
The Rochester-based national health system, which has hospitals and clinics in La Crosse and throughout the Coulee Region, postponed elective patient care, as did most hospitals in the country to prepare for the onset of coronavirus.
That eliminated the majority of revenue needed for research, to develop and expand testing and realign its facilities and care teams to treat COVID-19 patients, but the health system stands by the decision, Mayo said in a statement issued today.
Mayo employees will receive full pay and benefits through April 28, but temporary furloughs of some staff and salary reductions will be required after that, the statement said
Pay will be reduced for about one-third of the system’s 70,000 employees nationwide, according to the statement, which that details of where and when would be announced in late April or early May.
“We will work with our teams in the coming weeks to ensure that our staff is supported, that the duration of this disruption is as limited as possible, and that we are ready to ramp up quickly and resume full operations when it is safe to do so,” the statement said.
Some details include:

  • The salaries of Mayo CEO Gianrico Farrugia and CAO Mary Jo Williamson will be reduced 20 percent, and neither will receive a 2020 salary adjustment.
  • Employees who report directly to Farrugia and Bolton will take a 15% pay cut.
  • Consultants and senior administrators will take a 10% pay cut, and the pay for salaried allied health staff will be reduced 7%.
  • All employees except hourly staffers and those whose costs are fully paid by an external party will take pay cuts.
  • Hourly staffers’ pay will not be cut. That segment includes most nurses and others such as desk attendants, environmental services and technicians who might work in areas such as labs and radiology.

Mayo also unveiled a blog with comments from Dr. Bobbie Gostout, the system’s president, and Williamson.