MINNEAPOLIS — Minnesota's largest pediatric hospital has a tentative agreement to furlough 181 full-time nurses.
The move is another example of hospitals struggling financially with fewer patients due to COVID-19.
Children’s Minnesota CEO, Marc Gorelick, said business has dropped following the suspension of non-elective surgeries due to COVID 19.
Gorelick said cutting pay and issuing furloughs is part of a goal to save about $30 million in cost. Across the board pay reductions will be effective May 2 through December 25, 200.
The change comes at the same time Gorelick was named one of the 2020 most admired CEO’s by the Minneapolis St Paul Business Journal.
Part of the recognition lies in his push to focus on equity, diversity and inclusion when problem solving. And, to help solve the latest problem, Gorelick says an equity lens was applied. There will be no change for employees making $18.32 or less.
For example, 80 percent of environmental services and nutrition workers at Children’s are people of color - they also have the lowest pay.
“People in the organization that make the least aren't asked to take any pay reduction and those who make the most are taking the largest pay reductions,” he said. We could've done it in a number of different ways but we wanted to make sure we did it in a way that was fair and equitable.”
Goerlick also added he believes the term non-elective is unfortunate.
“It is meant to convey something that can wait opposed to something that is optional. For all our patients, the procedures they are supposed to have are not optional,” he said. “As this goes on those things that could wait, can't wait. It may not be not an immediate threat of life but certainly is a threat to their quality of life. We hope we can start addressing some of those procedures so we can help these kids get the care they need.”
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