Sanford/University of South Dakota Medical center executives will forgo bonuses for a second straight year, while increasing pay to the employees. In an email to all staff from Hospital CEO Kelby Krabbenhoft:
First, we remain consistent with the letter I sent you at Christmas that said we would enter our budget preparations with an assumption that we would have a general "increase" to your wages for all staff employees. Second, we remain consistent that since Sanford Health appears to be meeting its goals, that we would anticipate paying out our employee bonus again this year to you. Third, we remain consistent with what I recommended to the Trustees, that we would not provide bonuses to management or executives for the second straight year (even though our goals were met.)
Meanwhile, Avera McKennan Hospital staff will take pay cuts in order to offset the rising cost of charity care. As a Catholic Hospital, Avera McKennan excuses many patient bills when there is financial hardship.
Management is setting the example:
Fred Slunecka, Avera McKennan regional president, and other top managers will take a 6 percent pay cut. Other managers will take a 5 percent cut. Other employees will see a 4.75 percent reduction. Employees also will lose five days of paid vacation.
It is refreshing to see this kind of sacrifice when the news continues to report on the excessive and luxurious spending of some business leaders and politicians. Please take a moment to give thanks for our two great medical systems here and to pray for their work.