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Catholic Health cuts pay of senior leaders by 20%

Catholic Health is cutting the salaries of its senior leadership by up to 20% as it faces "unprecedented" losses in revenue amid the Covid-19 outbreak, the company announced Thursday.

CEO Mark A. Sullivan did not say how many administrators have agreed to accept a pay cut, but released a statement that the reductions would remain in place for an extended period.

[Related: Eastern Niagara Hospital furloughs 60 workers indefinitely]

Catholic Health operates Sisters of Charity Hospital, Mercy Hospital of Buffalo, Kenmore Mercy Hospital and numerous other health care facilities in the area.

Catholic Health and other hospital systems across the country have seen revenue plummet in recent months as elective surgeries and other nonemergency procedures have ended.

Systems also have spent a lot of money on protective equipment, ventilators and other items to respond to the coronavirus outbreak. Catholic Health, for example, converted its St. Joseph Campus in Cheektowaga to serve only Covid-19 patients.

"In addition to the loss of elective surgeries and most outpatient services, volume in our emergency departments, primary care centers, and other specialty clinics has dropped by as much as 50 percent," Sullivan said in the statement. "We also believe our community is adhering to 'STAY HOME' guidelines, afraid to go to the hospital unless absolutely critical – a trend that is occurring throughout the country. This unprecedented situation has created a financial shortfall unlike anything we have ever experienced."

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