Cleveland Clinic chief executive officer Toby Cosgrove, MD, has told employees that the health system has instituted a hiring and salary freeze.
The freeze does not affect employees needed for direct patient care, according to initial reports in the Cleveland Plain Dealer. Other hiring exceptions must get approval from hospital leadership.
"Increases for medical staff will continue based on market conditions," Cosgrove wrote in a recent e-mail to Cleveland Clinic employees. He also said "salary adjustments will be considered for other positions on an exception basis only according to market competitiveness."
Health system officials said another area where the salary freeze may not be implemented includes nurses.
No layoffs are planned at the Clinic, although the hospital has initiated travel restrictions, as well as restrictions on the use of consultants and contractors.
"This is a time for all of us to work together, to go that extra mile in putting our patients first, and to become more efficient in our work," Cosgrove wrote.
In 2006, the Clinic's main hospital reported paying $1.2 billion in wages and salaries for employees, officers and directors, not including pensions and other benefits. The Clinic also reported an end-of-year "excess" of $248 million in 2006 and nearly $1.9 billion in net assets.
"Although Cleveland Clinic continues to be financially strong, we must take proactive measures to do all that we can to deliver on our mission and help minimize the negative impact of the current economic crisis on Northeast Ohio," Cosgrove said in his e-mail.
Cosgrove also told employees that the Clinic is seeing a decrease in patients.