CHILDREN’S HOSPITAL trims staff, executive pay.

Hospital also trims exec salaries to get through lean times

to the economic impacts of the covid-19 pandemic, Arkansas Children’s hospital announced Friday that it was laying off 25 employees and reducing compensation for its top executives.

In a news release, the hospital announced a 20% reduction in executive compensation and a 10% reduction in director compensation for fiscal 2021.

The hospital’s fiscal year runs from July 1 through June 30, spokeswoman Hilary DeMillo said.

“We are collectively living through the most difficult health crisis of our lifetime,” hospital Executive Vice President Fred Scarborough wrote in Friday’s release. “As a direct result of the impact of covid-19, Arkansas Children’s has experienced a decrease in patient volumes and a reduction in workload for some team members.”

He said there is “every indication” that the changes in volume and workload would last throughout the next fiscal year.

The measures announced Friday are a way to “ensure

uninterrupted service” to patients, Scarborough said.

Other changes include mandatory reduction of all external travel costs, elimination of select contracted services, reductions of onsite catering and sponsored events, a 50% reduction in minor equipment expenditures and a 30% reduction in capital expenditures. The changes will remain in effect through at least June 2021, Scarborough said.

The hospital also announced that “only strategically essential positions” may be filled during the fiscal year and they must be approved by the executive vice president. Scarborough wasn’t specific about what constitutes such a post.

In all, the hospital eliminated 42 positions, including 17 that were vacant, Scarborough said.

Severance benefits and outplacement services are being offered to those employees whose positions were eliminated, according to the hospital.

Friday’s announcement comes a week after a restructuring at the University of Arkansas for Medical Sciences that led to the elimination of 15 positions.

That action, UAMS executives said, was to ward off triple-digit furloughs and layoffs that otherwise would have been imminent.