Montana's largest health care system is making across-the-board spending cuts as it faces what it calls “serious financial challenges.”
In a statement, a Billings Clinic spokesperson says despite efforts already underway to cut costs in every department, the hospital system is still recording “unsustainable monthly losses.” The spokesperson attributes that to the same increased costs many health care organizations are experiencing, like for supplies and labor.
Included in the new cuts being implemented are:
- a 5% salary reduction for physicians through June
- a 10% salary reduction for executives
- a freeze on most new hires
- pause on employer match to the 403(b) employee retirement plan
- and a freeze on capital projects and expenditures
Billings Clinic has undergone significant expansion in the past few years — establishing a medical campus in Bozeman, pursuing a Level 1 trauma designation, and, recently, announcing plans to merge with Kalsipell-based Logan Health.
The hospital’s financial challenges come not long after Bozeman Health Deaconess Regional Medical Center announced cuts to its leadership staff, also citing rising costs and struggling revenue.