- Bon Secours Richmond Health System required managers and certain other salaried employees to take five paid days off, Richmond Times-Dispatch reported.
- The decree was given by CEO Toni Ardabell on July 19, according to RTD. The effort is an attempt to cut expenses before heading into the new fiscal year, which begins Sept. 1.
- Carol Billingsley, a Bon Secours spokesperson, told RTD the order does not indicate financial troubles for the nonprofit system.
Though the system stated it isn't in dire straits fiscally, the move is an interesting use of resources.
Employees exempt from Fair Labor Standards Act overtime requirements with accrued paid time off were told to take five days off. This effort places a burden to stretch services and labor resources while those employees are out, but on the other hand, they are not adding to expenses while they are gone.
In addition, the state of Virginia requires employers to pay employees accrued paid time off if and when an employee is terminated. The move is seemingly innocuous, but serves as a reminder that health systems and organizations address the fiscal alignment of their budgets through a variety of means.
Providers generally have seen declining admissions and rising expenses recently, which has led some organizations to review their supply chain or cut staff.
Bon Secours Health System recently reported a drop in operating income and revenue for the nine-month period that ended May 31. Despite the lower income and revenue, Bon Secours still saw a net surplus of $105.1 million, which was thanks in large part to an investment gain of almost $75 million. This is as the 19-hospital nonprofit system shifts to more outpatient services (which saw a 2% increase in visits during the nine-month period while hospital discharges decreased slightly).