Cautiously optimistic after a few months of good economic news, administrators Sonoma Valley Hospital administrators have lifted a five percent pay cut levied December 13.
The five percent will reinstated with the pay period beginning May 2. A furlough policy applying to other employees will remain in place.
“We will not be rescinding the furloughs or relaxing any of our other financial initiatives,” staff was told in a statement Tuesday. “Although we have made great progress in managing our costs, we are still not as productive as we need to be.”
The announcement was signed by Carl Gerlach, CEO, Tim Noakes CFO, Robert Cohen, M.D., CME and Mary Kelly, COO. It stated, “Our financial assessment shows that we still have significant challenges regarding our service volumes and revenues.”
Hospital employees were thanked for their sacrifice and support during the time of financial crisis.
The lifting of the salary cut is based on a March financial review that showed improvement to the bottom line. First quarter revenues are slightly behind budget, but operating expenses have been significantly reduced: year-to-date the figure is $550,000 lower than projections.
The administration team is working to secure a two-months of cash reserve. In order to do that, the team said it will need to continue pursuing efficiency and cost savings.
“Now’s the time to make a run at getting back on track,” CFO Tim Noakes told the hospital board April 1. “That will be the challenge over the next four months, staying focused.”
