Children’s Minnesota is joining a growing list of Minnesota healthcare companies making cuts to ease financial hits from the COVID-19 pandemic.

The hospital group will begin pay-rate reductions across the board on May 2, and they will continue until Christmas.

Most employees will see a cut of 10 percent; top executives’ compensation will be reduced 30 to 55 percent.

Short-term furloughs will be implemented, affecting about 225 employees.

They will be eligible for unemployment benefits and will continue to receive paid medical, dental and life benefits.

Children’s Minnesota sent a statement to Fox 9 reading in part: “In anticipation of a substantial decrease in 2020 revenue and higher costs associated with COVID-19 preparedness, Children’s Minnesota will be implementing a number of cost-saving measures within the next several weeks. These measures will include employee-related actions, such as tiered wage reductions and a furlough of low-need employees, postponement of capital and other strategic spending, and an overall reduction in most other expense categories,”

Employees were told the hospitals in Minneapolis and St. Paul have seen a 69-percent reduction in emergency department visits and close to 85 percent drop in surgeries and other procedures since the pandemic began.



The Mayo Clinic, the state’s largest private employer, announced pay cuts and furloughs on April 10.



Earlier this month, the Minnesota Hospital Association told state lawmakers hospitals were losing $31 million a day because of COVID-19 outbreak.