Major Medical Staffing Company Cuts Salaries, Benefits For ER Workers

Though hospitals are full with coronavirus patients, the medical industry has taken a hit due to the postponement of non-critical appointments.
Posted at 1:34 PM, Apr 01, 2020

A major medical staffing company has reportedly cut salaries and benefits for emergency room doctors and nurses — many of whom are treating coronavirus patients. That's according to a new report from ProPublica.

Alteon Health is cutting salaries by 20% and reducing work hours, as well as suspending benefits like paid leave and 401(k) matches. It says it's struggling financially due to the coronavirus pandemic.

While hospitals are full, other non-critical medical appointments have been postponed. And, revenue flow has slowed because insurance companies are taking longer to process claims as they adjust to remote work.

Most ER workers are employed by medical staffing companies, and Alteon's CEO predicted other companies will make cuts. He said in a memo, "You can be assured that similar measures are being contemplated within these organizations and will likely be implemented in the coming weeks."

The company says the measures are temporary, but it's unclear how long they will be in place.

Contains footage from CNN.