Beaumont CEO says he's taking a 70% pay cut as layoffs sweep through administrative staff
With Michigan's largest hospital system "financially hemorrhaging" and under a cloud of uncertainty for at least the next two years, the CEO of Beaumont Health says he's taking a 70% cut to his base pay and is forgoing any bonuses. Fox's cut in pay is the steepest percentage cut among the hospital systems in the region that have disclosed CEO pay reductions. The CEO of the Detroit Medical Center is taking a 10% cut, while the chief at Michigan Medicine is taking a 5% cut. On the west side of the state, Tina Freese Decker, president and CEO of Spectrum Health, will take a 40% reduction in pay. Her direct leadership team will take a 30% reduction, according to a news release. Shooshan Danagoulian, an assistant professor at Wayne State University who studies health economics, said she’s hearing that hospital administrators are taking pay cuts of 10%-20% during the pandemic. She said these administrators realize they have to sacrifice, too. They can’t ask their physicians, nurses and other providers to risk their own health to treat COVID-19 patients or take furloughs and layoffs while they continue to take a full salary. “This is a way for them to show solidarity” with physicians and other professionals who “are doing their own part,” Danagoulian said.