UI Hospitals & Clinics struggle to reduce costs - KWWL - Eastern Iowa Breaking News, Weather, Closings

UI Hospitals & Clinics struggle to reduce costs

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IOWA CITY (KWWL) - University of Iowa Health Care today announced two new voluntary expense reduction programs as part of its ongoing efforts to reduce expenses in keeping with the decline in the overall economic situation.

A "Voluntary Temporary Reduction in Pay" option for FY 2010 is being offered to all eligible University of Iowa Hospitals and Clinics and University of Iowa Roy J. and Lucille A. Carver College of Medicine faculty and staff. In addition, all eligible employees of UI Hospitals and Clinics are asked to give back one or more days of vacation time.

These programs follow the initiative of more than 40 senior managers who volunteered to give up 5 percent of their pay for the remainder of FY 2009 and through FY 2010, forego any annual salary increases in July 2009 and forego any incentive compensation for FY 2009.

"Response to the senior leadership initiative has been overwhelmingly positive," said Jean Robillard, M.D., vice president for medical affairs for UI Health Care. "Many employees wrote to ask what they could do to help, and many suggested a voluntary program similar to what senior management is doing. These programs were developed in direct response to employee requests."

Although it is unknown how much this latest voluntary effort will save, Robillard is optimistic that savings will be significant.

"UI Health Care is continuing to evaluate a range of other opportunities for further, necessary expense reductions. The more we can achieve through voluntary actions, the more we will be able to meet our budget goals, minimize the impact on the workforce and preserve UI Health Care's mission of excellence in patient care, education and research," he said.

Online Producer: Jason Mortvedt

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