By Emily Monacelli, Truth Staff
emonacelli@etruth.com
GOSHEN -- Elkhart County's community hospitals are reflecting the county's unemployment struggles and a high number of uninsured and underinsured patients.
A cost-savings measure announced to Goshen Health System employees last week will save the health system $12 million but will cost its employees.
A press release issued Friday by Goshen Health System did not specify what those cost-savings measures were, but they were detailed in a letter to employees.
Executives took a voluntary 20 percent pay cut. Employees' merit pay increases will be deferred. So will the company's 401(k) profit-sharing contributions at year end. The company still will match employees' contributions up to 2 percent. Full-time employees will receive two to three fewer paid days off, according to the letter sent to employees on April 16.
These measures will save the company $4.5 million, according to the letter.
"We expect these measures to be temporary, and all of the items listed above can be re-instated as the economy improves," President and CEO James O. Dague said in the letter. "Although prudence dictates that we consider additional measures in the event the economy worsens beyond current expectations, it is our hope that no further steps will be necessary."
Goshen Health officials presented potential budget changes and met with focus groups in March to give employees the opportunity to give feedback.
They also encouraged workers to think of ways to save money in their departments. Employees submitted departmental cost-savings ideas of $3 million in 2008, according to the release.
Hospital officials would not divulge the details of the letter.
"The letter sent to health system colleagues is a confidential communication between the health system and the colleagues and as such, we will not discuss the content of the letter publicly," said Bridget Levitz, public relations coordinator at Goshen Health System.
The hospital employs about 1,400 people.
The measures will "allow staffing levels to remain the same with no cause for layoffs," according to the release.
Levitz cited a 5 percent increase in the hospital's Medicare and Medicaid patients so far in 2009. The hospital receives 25 cents on every dollar in Medicare reimbursement and 18 cents on every dollar for Medicaid reimbursement, she said.
Elkhart General Hospital also announced budget measures last week. Effective immediately, all executives received an 8 percent pay cut and general hospital employees received a 4 percent pay cut.