By John Lyon
Arkansas News Bureau
LITTLE ROCK — About 3,300 employees of the University of Arkansas for Medical Sciences learned today that pay raises they received this fiscal year or expected to receive are being rescinded.
In a letter to employees, Richard Pierson, director of UAMS’ medical center, said non-classified medical center employees would receive no merit increases this fiscal year because of declining revenue.
Employees who have already received raises will see their pay revert to what it was before the fiscal year began July 1 but will not be asked to return money they have already received.
“We regret having to take this measure, but we feel it is the best solution in the interest of our employees and our patients. This reduction in merit adjustment produces a cost reduction equivalent to 50 jobs,” Pierson said in the letter.
UAMS spokeswoman Leslie Taylor said the economic environment for hospitals in general is tough.
“Our volume of patients is up, all of our missions are right on track, but the thing is, our revenue is down,” Taylor said. “We are seeing more people who are without jobs, we’re seeing people who are sicker and have to stay in the hospital longer because they’re putting off treatment.”
A $2.2 million cut in state funding has exacerbated UAMS’ money problems, Taylor said. UAMS receives about 10 percent of its funding from the state.
The cuts will affect employees from Pierson on down, Taylor said. The cuts will not affect classified employees such as secretaries and electricians whose pay grades are established statewide.
Doctors will not be affected because they are not employees of the medical center.
The average employee’s raise is 2 percent, Taylor said.
“What we’re trying to do is to trim everything we can and not have to cut people. That would certainly be our last resort,” she said.
Also today, UAMS Chancellor Daniel Rahn said in an e-mail to all UAMS employees that he and former Chancellor I. Dodd Wilson have been discussing economic issues facing the institution for the past several months.
“Campus wide, we have involved senior leadership in implementing cost reductions, including a strict hiring review, not filing positions where work can be absorbed by existing staff, reducing supply utilization (and) travel costs and other incremental actions,” Rahn said in the e-mail.
Taylor said UAMS also is looking at other cost-cutting measures such as eliminating catering for meetings and finding ways to reduce overtime pay.
