Hospitals mull pay cuts as Covid-19 takes toll on their revenue

Monday July 13 2020

Hospitals are facing tough times over Covid-19.

Hospitals are facing tough times over Covid-19. PHOTO | Cyril Ndegeya  

ARAFAT MUGABO
By ARAFAT MUGABO
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Some private hospitals are asking their employees to take pay cut as they register a decline in their revenues.

Rwanda Today has learnt that several private hospitals have been forced to suspend voluntary surgery, which normally contribute a large chunk of their income.

A medical doctor at Hospital la Croix du Sud, a private hospital in Kigali who spoke to Rwanda Today on condition of anonymity because they are now allowed to speak on behalf of the organization confirmed that they had received communication about plans to reduce their pay.

“We understand the number of patients has reduced but this should not be the reason for cutting salaries because our contracts are clear about that if employees and employers fail to understand each other on terms of work, they can only terminate the contract not cutting the salary irrespective of the contract.” he said.

Though there are no specifi c dates when pay cuts will be effective, Rwanda Today has learned that before the end of July many private hospitals will either terminate contracts of some workers or cut salaries.

Dr George Ntakiyiruta and managing director of private EjoHeza Surgical center said that hospitals are seeking to cut expenses. “There are plans to cut salaries if numbers of customers continue decreasing because it’s the only way to reduce expenses and remain relevant and providing quality services,” says Dr Ntakiyiruta.“

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Some hospitals have started sending workers into unpaid leaves with others completely terminating their contracts to reduce operational cost,” he said, adding “At EjoHeza we haven’t adopted the approach to cut payments of employees but it might be the next option,”
Dr Ntakiyiruta said health workers should understand their employers and try to be flexible, depending on the required work arrangement and business exigencies.

About 10 specialised doctors from big private hospitals in the country anonymously told Rwanda Today that if their employers implement the plans to either cut or terminate the contracts they are ready to put down tools.

Efforts to reach to Dr Antoine Muyombano, chairman of Rwanda Private Medical Facilities Association for comment proved futile.

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