Winneshiek Medical Center is forced by the coronavirus pandemic to make cuts affecting its employees

Winneshiek Medical Center is taking several steps it hopes will help it weather the financial storm brought on by the coronavirus epidemic.

WMC Chief Administrative Officer Lisa Radtke has announced the medical center will defer annual wage increases for staff which normally would occur in July.  Instead, temporary salary reductions will affect all salaried exempt employees, beginning July 2nd.  Additionally, upon completion of the Paycheck Protection Program from the federal government's stimulus program, departments at the medical center will return to "staffing to essential workload."  In some areas, temporary voluntary and involuntary furloughs, reduced hours and FTE reductions will be instituted.  However, staff benefits will remain intact.

Winneshiek Medical Center is projected to lose approximately $6 million from operations by the end of June.  It also could experience up to an additional $1.4 million shortfall, based on projections which did not include the pay reductions.

Radtke says, "We believe these difficult steps will allow us to maintain the financial stability to continue our mission without making permanent workforce reductions or adjustments. We expect these decisions to be temporary, and are confident Winneshiek Medical Center will rebound from this pandemic, emerge in-tact, mission-focused, true to our values and ready to resume our path to 2030 and our ten-year vision."

Winneshiek Medical Center has already taken several steps to respond to its financial crisis.  The medical center has reduced operating expenses by minimizing nonessential expenditures, deferring minor equipment purchases, reducing use of supplemental staff and consulting services and deferring construction and capital equipment purchases that can be stopped without compromising patient care.  Staff have taken time off without pay. Mayo Clinic Health System doctors and administrators have taken salary reductions.  The medical center has received significant funding from the CARES Act to reduce their losses and keep staff pay protected.