Envision Healthcare Corp said on Wednesday it has cut senior staff salaries by 50% and plans other cost-cutting measures as the coronavirus pandemic puts pressure on the company.
The company reported steep drops at its care facilities as COVID-19 is forcing patients to delay surgeries and stay out of hospitals.
Envision, which provides medical staff to hospitals and operates surgery centers, said performance-based bonuses and profit sharing with staff will be delayed until fall.
Retirement contributions, merit increases, and promotions for all employees will be temporarily suspended, the company added.
"The healthcare system is probably under as much financial strain as I've ever seen and we're part of that," Envision Chief Executive Officer James Rechtin said.
The hospital industry is under pressure to halt lucrative elective surgeries and relocate patients not infected with coronavirus from frontline facilities, hurting profits.
Envision said it had seen a significant decrease in patient volumes, as high as 70% in areas such as ambulatory surgery and anesthesia services.
Private equity firm KKR & Co took Envision private in 2018 in a deal valued at $5.57 billion.
(Reporting By Mrinalika Roy in Bengaluru and Robin Respaut in San Francisco; Editing by Shounak Dasgupta)
