Mercyhealth to cut leadership, some physicians' pay

Mercyhealth officials said Wednesday it will reduce the salaries of employees in leadership roles by 10% and reduce some physicians' pay as the economic impact of the COVID-19 crisis affects the health system's bottom line.

Officials at the Janesville, Wis.-based system - which runs Mercyhealth Hospital and Medical Center in Harvard and managed care facilities in Algonquin, Barrington and Crystal Lake - said it had already been dealing with challenges from Medicaid issues in Illinois before the COVID-19 crisis began. Those issues alone had a financial impact of more than $30 million dollars a year, officials said in a statement.

Mercyhealth has already furloughed employees in non-direct patient care, administrative areas and outpatient and clinic areas to reduce costs.

"While we all know these actions are not easy, we also know we need to make these adjustments in order to adapt to the massive changes to our business," said Mercyhealth President and CEO Javon Bea.

Mercyhealth runs seven hospitals and 85 primary and specialty care facilities in northern Illinois and southern Wisconsin, employing more than 8,000 people and 850 physician partners, according to its website.