Doctors Hospital’s executives and managers have agreed to a pay cut up to 25 percent in order to assist the company in cutting costs amid a decline in business activity, a press statement from the hospital revealed.
Doctors Hospital’s fiscal year results ending January 31, 2020 noted a 48.9 percent year-over-year improvement in profits, ending with $6,009,685 or $0.60 per share on January 31, compared to $4,040,470 or $0.41 per share the same time last year.
“Net income grew year over year by approximately 48.7 percent and reflects the second consecutive year of record financial performance considering the past five years’ earnings development,” the hospital’s fiscal results revealed.
“Management continued its prior year focus to narrow the losses at Bahamas Medical Centre (Doctors Hospital West). Based on the introduction of a primary care outpatient service offering and cost improvement measures, losses narrowed from $724,949 in fiscal year ending (FYE) 2019 to $504,245 in FYE 2020, representing an improvement of 30.4 percent year over year.”
Doctors Hospital Chief Financial Officer Dennis Deveaux said in the company’s statement that the hospital is now traversing a difficult period because of the state of the country’s economy following the novel coronavirus (COVID-19) pandemic. The statement added that Deveaux is overseeing the hospital’s fiscal response to COVID-19.
“We are navigating a fairly turbulent landscape, unprecedented in the country’s history,” said Deveaux.
“In addition to our obligations on Blake Road under the Emergency Powers Act, we have an obligation to plan for a potentially sustained downturn in our business activity.
“Although we must tread carefully, the move to cut executive and managers’ salaries reflects bottom line financial realities, which are prudent and unavoidable.”
The company’s statement explained that the decision to undergo a pay cut was unanimously decided.
The company also added that it has stuck by its three-month commitment during the COVID-19 lockdown not to terminate or furlough any of its 535 full-time employees.
Doctors Hospital President Dr. Charles Diggiss said a “hero bonus” put in place for the hospital’s associates is warranted.
“Our associates have risen to the clarion call and we should not wait to celebrate them,” said Diggiss.
“The hero bonus is a tangible expression of our appreciation for their amazing commitment to patient care regardless of the circumstances. This is a defining moment for our health system. Our associates need continual reminders of our support and appreciation of their service, even in a harsh fiscal environment.”
The hero bonus will be given to team members who provided care for COVID-19 positive patients. That bonus will be more than $35,000, according to the company’s statement.