Marshfield Clinic executive director says cuts needed - WAOW - Newsline 9, Wausau News, Weather, Sports

Marshfield Clinic executive director says cuts needed

MARSHFIELD (WAOW) – The executive director of Marshfield Clinic says a loss of $17 million in anticipated revenue since Oct. 1 is forcing budget cuts, including a 5 percent pay cut for doctors and employees who earn more more than $125,000.

The streamlining also will rescind a 2 percent staff salary raise set for April 1 and discontinue a 1 percent 401k match, Executive Director Dr. Brian Ewert said in an email sent Wednesday to employees.

The moves, effective April 1, should save about $13 million, he said.

Ewert said the drop in anticipated revenue is due to decreased demand for services in all of the clinic's medical practices plus reduced payments for Medicare services.

He said the drop in people seeking medical care the past five months was more severe than the clinic had predicted.

The decreased demand is being driven by high deductible health plans, Jake Miller, a spokesman for the clinic, said Friday.

A $5,000 deductible for family health insurance coverage is not uncommon, meaning decisions about medical care probably are competing with high heating bills this winter and other family needs, he said.

Marshfield Clinic has about 7,700 workers, including 700 doctors, and operates about 50 medical centers located in central, northern and western Wisconsin.

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