Erlanger lifts cost-cutting measures

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    Peachtree – After more than 100 people were laid off earlier this month, things are returning to normal at Erlanger Health System’s hospitals and medical centers, including Erlanger Western Carolina Hospital.
    Furloughs and reduced work schedules ended last week at Erlanger Health System, while paid time off accrual was restored on June 28, according to a statement from Dr. Will Jackson, chief executive officer.
    “I know the past few months have been very challenging for all of you, both personally and professionally, and perhaps none more difficult than this past Friday,” Jackson wrote to staff, referring to the day 93 non-clinical employees were laid off June 19.
    The health system has been suffering financially due to the coronavirus pandemic. Elective surgeries and imaging services were put on hold temporarily, eliminating a key source of revenue for the system, Erlanger reported in March.
    On March 30, Erlanger announced a cost-cutting plan that included furloughing some administrative employees, staffing changes, reducing overtime, suspending vacation accruals, suspending 403b contributions and reductions in leadership pay. Earlier this month, a Chattanooga, Tenn., nurse started the process to form a union for Erlanger nurses and is looking into using more than one to represent more employees.
    “I am deeply sorry about recent external comments, which have detracted from the lifesaving and compassionate work that takes place every day across our health system,” Jackson said.
    In addition to the furloughs ending and paid time off accrual returning, other cost-cutting measures are scheduled to be lifted later this summer. The 403b plan contributions will be restored July 26, while administrative leadership salaries will be restored Aug. 9. Jackson added that his salary will be restored Aug. 23.
    Erlanger Health System has 6,676 employees, including 431 employees at Erlanger Western Carolina. Erlanger purchased the former Murphy Medical Center in April 2018.