IHC redirects bonuses from execs, MDs to employees

Upper-level management and physicians employed by Salt Lake City-based Intermountain Healthcare Inc. will forgo holiday bonuses this year because of the slowed economy, and the money will be divided among rank-and-file employees.

The bonus usually is considered by IHC as an end-of-the-year thank-you check and is not guaranteed each year, but "in recent years, it's been pretty consistent," IHC spokesman Daron Cowley said.

"This year, with the slowdown in the economy, it was decided that director-level managers and above, as well as employed physicians, will not receive a thank-you check at the end of the year so that checks for other employees could be larger, " Cowley said.

The employees can expect to receive checks during December between $85-$250, depending on their hours worked during the year.

IHC is a nonprofit organization that provides health care throughout Utah and southeastern Idaho, with 6 million outpatient visits last year and 38,553 inpatient surgeries, according to IHC's 2007 annual report. IHC also is the state's largest employer, providing jobs for about 30,000 people.

The decision not to give management and physicians bonuses was made this month, after meetings with IHC's Board of Trustees that included representatives from the groups of employees who will not get the checks.

IHC's financial slowdown began in the fall, Cowley said. Contributing factors include fewer people getting colonoscopy screenings and elective surgeries.

"I would simply say we're seeing less volume," Cowley said. "We're seeing less patients come to our facilities. We're seeing drops in patients coming in for certain types of procedures."

Most IHC employees will receive a pay raise next year, he said.

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E-mail: lhancock@desnews.com