Boulder Community Health is instituting cost-reduction measures that enable
the independent non-profit health system to respond to financial pressures
caused by the COVID-19 pandemic.
BCH has announced to employees a detailed plan that uses a mix of temporary
cost-cutting measures to reduce the organization’s expenses by $3
million per month from August through the end of the year. The plan requires
all employees to share in some financial sacrifice. This plan will go
into effect July 19.
Like other health care organizations around the country, BCH is facing
severe financial consequences from COVID-19. The health system had a steep
drop in revenues caused by having to temporarily suspend all non-urgent
outpatient visits and elective surgical procedures while also needing
to purchase PPE, testing supplies and other equipment needed to care for
“We are taking action now so we can continue to provide our community
with the high quality, personalized care they expect and deserve,”
said BCH President/CEO Dr. Robert Vissers. “We need to take significant
actions to lower our costs and create a financial structure that is economically
sustainable while preserving our most valuable resource – our employees
– as much as possible.”
Over the last three months, patient care areas at BCH have had to furlough
or reduce hours for some employees due to the decline in patients. The
organization is now instituting a temporary 10% pay reduction or reduction
in hours for most other employees for the next six months. Other elements
of the cost-reduction plan include mandatory vacation days and canceling
market pay adjustments and a contribution to the employee retirement plan.
This temporary 10% pay reduction equals a 5% cut in annual pay for most
employees. However, Dr. Vissers noted, the multiple elements of this plan
have been consciously designed to have a greater impact on BCH leadership.
Vice presidents and the CEO will take a 20% reduction in compensation.
“We often talk of BCH as being a family. Family members strive to
help each other in tough times,” Dr. Vissers said. “Each BCH
employee is making a personal sacrifice that supports our co-workers across
The temporary cost-reduction measures will end in January, 2021. At that
point, pay rates and work hours will return to current levels.
“I’m confident that these important cost-cutting actions, along
with other initiatives in development, will enable BCH to attain the consistently
strong financial results needed to maintain our independence,” Dr.