Wednesday, March 25, 1998

Straub cutting employee
pay by 3 percent

'It's a kinder alternative
to layoffs,' a company
spokeswoman says

Star-Bulletin staff


Straub Clinic & Hospital's 2,000 employees will receive 3 percent less in their paychecks starting April 5 because of declining hospital revenues.

However, there will be no layoffs or changes in services, a hospital spokeswoman said.

Dr. Blake E. Waterhouse, Straub's chief executive officer, sent employees a letter yesterday announcing a temporary across-the-board salary reduction.

"It is uncertain when this 3 percent will be restored but I sincerely hope we will be able to make up for this reduction next year," Waterhouse wrote.

The salary pool for Straub's 200 physicians was reduced last month by 3 percent, said hospital spokeswoman Michelle Jerin.

The hospital's net revenue for December was $3.2 million less than budgeted, she said.

And for January and February combined, it was $2.7 million less than budgeted, she said.

She stressed that the salary reductions are temporary measures to cope with difficult times.

"It's a kinder alternative to layoffs," she said.

Jerin said services won't be affected at Straub's 19 statewide facilities.

"We will continue to provide the finest in health care, as we have for 77 years."

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