One of the country's largest medical staffing companies, Alteon Health, announced this week that it will slash benefits for doctors and nurses, many of whom are currently dealing with the coronavirus outbreak.
"Despite the risks our providers are facing, and the great work being done by our teams, the economic challenges brought forth by COVID-19 have not spared our industry," Alteon Health CEO Steve Holtzclaw told employees in an email on Monday, which was obtained by STAT and Pro Publica.
"We will communicate with you regularly and hope to return compensation to normal levels as soon as possible," he added.
According to the memo, clinicians will have their hours reduced, administrative employees will have their pay cut by 20%, and 401(k) matches, bonuses, and paid time off have been suspended.
The Boston Globe reported last week that over 1,100 physicians and staffers with Atrius Health have had their paychecks reduced or face unpaid furloughs.
"This is at a time when many of us have moved out to live like lepers separate from family to prevent spreading infection, and have already been working huge extra hours trying to scrape together [personal protective equipment] and otherwise brace for COVID-19," Dr. Matt Bivens, who works in the emergency room at Beth Israel Deaconess Medical Center and St. Luke's Hospital in Massachusetts, told the Globe.
The coronavirus outbreak has caused many hospitals to cancel elective procedures and people have been encouraged to avoid hospitals if possible, causing revenue to decline in hospitals across the country.
"On average, our emergency department and hospitalist programs have seen a decline of approximately 30% across all client populations as patients avoid hospital environments, elective procedures are suspended, and general activity is reduced," Holtzclaw wrote in the email.