Waterbury Hospital cuts staff wages to save $6M
WATERBURY — Waterbury Hospital is cutting the pay of most workers in an effort to keep a proposed acquisition on track.
Hospital President and Chief Executive Officer Darlene Stromstad, who is taking a 20 percent pay cut, tells the Republican-American the reductions are necessary in light of the acquisition by Prospect Medical Holdings.
She called the cuts a short-term solution to save cash, and the intent is to restore wages to previous levels when the deal closes. The cuts will save about $6 million.
The hospital is reducing wages to union and non-union workers by 5 percent, managers by 7 percent, and senior management and employed physicians by 10 percent.
Stromstad says the hospital’s parent company will provide emergency funds for employees for whom the cuts create a hardship.