LITTLE ROCK, Ark. — Arkansas Children’s provides the following statement regarding systemwide cost-saving measures announced to staff this afternoon.
“We are collectively living through the most difficult health crisis of our lifetime. As a direct result of the impact of COVID-19, Arkansas Children’s has experienced a decrease in patient volumes and a reduction in workload for some team members. There is every indication that these changes in volume and workload will last through June 2021.
Today, we announced a series of cost-saving measures to ensure uninterrupted service to the children of Arkansas and beyond:
- 20% reduction in executive compensation for the fiscal year 2021.
- 10% reduction in director compensation for the fiscal year 2021.
- Mandatory reduction of all external travel costs through June 2021.
- Elimination of select contracted services.
Significant reduction of onsite catering and sponsored event expenses.
- 50% reduction in minor equipment expenditures through June 2021.
- 30% reduction in capital expenditures through June 2021.
Elimination of traditional merit pay program for all staff through June 2021.
- Required Executive Vice President approval for any new hire. Only strategically essential positions may be hired.
- Elimination of 42 positions across Arkansas Children’s. 17 of the 42 positions are currently vacant. 25 of the position eliminations impact a team member with whom we have already met individually to discuss.
Again, these difficult actions are through no fault of any employee, but rather a direct result of reduced workload due to the impact of COVID-19.”