Arkansas Children’s releases statement on impact of COVID-19

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LITTLE ROCK, Ark. (KNWA/KFTA) — Arkansas Children’s provided a statement regarding cost-saving measures it is taking due to COVID-19.

These changes include reduction of onsite catering, elimination of 25 positions and elimination of select contracted services.

Read the statement below from Fred Scarborough, Executive Vice President and Chief Communications Officer at Arkansas Children’s.

“We are collectively living through the most difficult health crisis of our lifetime. As a direct result of the impact of COVID-19, Arkansas Children’s has experienced a decrease in patient volumes and a reduction in workload for some team members. There is every indication that these changes in volume and workload will last through June 2021.

Today, we announced a series of cost-saving measures to ensure uninterrupted service to the children of Arkansas and beyond:

Fred Scarborough
  • 20% reduction in executive compensation for fiscal year 2021.
  • 10% reduction in director compensation for fiscal year 2021.
  • Mandatory reduction of all external travel costs through June 2021.
  • Elimination of select contracted services.
  • Significant reduction of onsite catering and sponsored event expenses.
  • 50% reduction in minor equipment expenditures through June 2021.
  • 30% reduction in capital expenditures through June 2021.
  • Elimination of traditional merit pay program for all staff through June 2021.
  • Required Executive Vice President approval for any new hire. Only strategically essential positions may be hired.
  • Elimination of 42 positions across Arkansas Children’s. 17 of the 42 positions are currently vacant. 25 of the position eliminations impact a team member with whom we have already met individually to discuss.

Arkansas Children’s is offering severance benefits and outplacement services to the employees whose positions were eliminated to help them pursue new career opportunities.

Again, these difficult actions are through no fault of any employee, but rather a direct result of reduced workload due to the impact of COVID-19.”

Fred Scarborough

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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