Mercy Medical Center in Cedar Rapids, Ia., has implemented a hiring freeze in addition to a salary freeze for managers, directors and senior management.
Mercy CEO Tim Charles said Mercy's employees are a critical resource and the hospital continues to deliver quality healthcare while adjusting to "economic realities."
Other Iowa hospitals are also feeling the pain of recession.
University of Iowa Hospitals and Clinics in Iowa City has reduced expenses by 9 percent since last fall, primarily through staff redistribution and job attrition.
In January, Mercy Hospital in Des Moines offered employees the chance to switch from full-time to part-time or voluntarily resign.