Salary reduction

Sturgis Hospital has announced a temporary, 5-percent salary reduction that took effect at the start of this week.

Union representatives agreed to the action last Wednesday, according to hospital officials.

It is effective for the next eight biweekly pay periods. The reduction applies to all 350 employees, including management.

Hospital officials said a decline in patient volume beginning last fall led to the cost-saving measure.

Sturgis Hospital President and CEO Rob LaBarge said the medical facility has experienced a steady decline in patient volume since November 2013, though causes for that trend have not been identified.

Through the salary reduction, officials anticipate a savings of about $100,000 per month, LaBarge said, noting staff reductions and elimination of positions were other options considered.

The hospital’s annual salary and benefits totaled just under $25.5 million, or 58 percent of expenses, during fiscal year 2013.

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