Germantown, Maryland-based Alteon Health, a provider of emergency medicine, hospitalist medicine, critical care, post-acute care and virtual and home health staffing and services, has announced changes on its compensation plan in spite of the overwhelming demand for personnel to respond to the nationwide COVID-19 pandemic.
It appears that many staffing companies are losing revenue as elective procedures are canceled and attention is refocused on the care of COVID-19 patients. And reimbursements from major insurers are delayed as a portion of the claims processing workforce transitions to a working from home program.
In response, Alteon has circulated a memo announcing the changes.
"The memo announced that the company would be reducing hours for clinicians, cutting pay for administrative employees by 20%, and suspending 401(k) matches, bonuses and paid time off." According to Alteon CEO Steve Holtzclaw, "Despite the risks our providers are facing, and the great work being done by our teams, the economic challenges brought forth by COVID-19 have not spared our industry." "Holtzclaw indicated that the measures were temporary but didn’t know how long they would last."
Alteon Health is funded by Seattle, Washington-based Frazier Healthcare Partners, a private equity and venture capital firm specializing in the healthcare industry.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?