Pay cuts at Goodall Hospital
Goodall Hospital in Sanford is cutting pay and benefits for all employees to avoid further layoffs.
The pay cuts, which go into effect Sunday, range from 4% for hospital staff and 10% for upper management to 20% for hospital President Darlene Stromstad, according to the Journal Tribune. The hospital also is cutting one week of employees' vacation time and eliminating its 1% contribution to employee pension plans, the paper reported.
Stromstad told the Journal Tribune the pay cuts are in response to increases in bad debt and charity care -- which has doubled to 10% of revenues, or about $6 million per year -- and a lag in MaineCare reimbursements. By the end of May, she said the hospital will be owed roughly $11 million in MaineCare reimbursements from as far back as 2006.
In January, the hospital laid off the equivalent of 30 full-time employees to save $1.6 million, the paper reported. With 925 full- and part-time employees, the 58-bed hospital is the largest employer in Sanford.
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