AKRON, Ohio — Akron General Health System has asked its nurses and support staff to consider taking less pay in order to minimize likely job cuts in the future.
Officials from the health system met with leaders of the Professional Staff Nurses Association and United Steelworkers of America Local 1014-L on Monday ”to propose reopening the contracts to discuss a reduction in wages, with the goal of preserving as many jobs as possible,” Akron General spokesman Jim Gosky said in a written statement Thursday.
Even with wage concessions from the two unions, which represent nearly 1,600 workers, Akron General is still likely to cut some jobs, Gosky said. ”Any reductions we do make will be designed to have a minimal impact on clinical services,” he said.
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Like many hospital systems, Akron General has seen some patients delay diagnostic tests and cancel elective procedures in the last several months because of the nation’s economic recession. There’s even evidence that some patients are refilling prescriptions and visiting doctors less frequently, Gosky said.
At the same time, the hospital is treating more patients who lack medical insurance and is getting lower insurance reimbursements for patients who are insured. The system likely had an operating loss last year, Gosky said.
Akron General has taken some steps to improve its financial picture. In December, it cut four senior management positions, and its president and chief executive, Alan Bleyer, plans to take a 10 percent pay cut on March 1, Gosky said. The hospital also expects to recommend to its board three or four areas for investment, he said.
“While we are working hard to cut costs in other areas, however, we do not believe it will be possible to balance our budget without some reduciton in payroll, either through wage concessions or by eliminating positions,” Gosky said in the statement.
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Tim O’Daniel, president of the steelworkers’Â local, said Akron General “did ask for deep concessions” on Monday.
“We are currently analyzing their financial records, which they did provide to us,” O’Daniel said. Results of the financial analysis “will determine whether we will reopen the contract,” he said.
Leaders of the nurses’ association were not available for comment Thursday afternoon.