For those who may be interested, here's portions of an email from Joe Robertson (OHSU President) about what is going on at OHSU.
Remember, OHSU is more than a hospital -- it has clinics, 5 schools, and multiple research operations.
Addressing our shortfall of $30-35M, however, will require these efforts and more. Though we will protect as many programs and preserve as many jobs as possible, we have asked unit leaders to make significant reductions. These will be painful for all of us—for those required to make difficult decisions, those whose valuable work we can no longer support, and those who will be called upon to do more with less. Nevertheless, the reductions are necessary—and they make it clear that the magnitude of this economic crisis will affect everyone at OHSU.
We cannot ask you to share in this burden without doing our part as leaders. Just as we have directed others to implement cost-cutting measures, all members of my Executive Leadership Team—Steve Stadum, Peter Rapp, Brad King, Mark Richardson, Dan Dorsa, Lesley Hallick and Amy Wayson—are joining me in doing the same. We will begin by voluntarily forgoing 20 percent of our base pay, effective immediately and continuing until economic conditions improve. Combined with the incentive-based portion of our compensation that we previously volunteered to forgo, this decision will result in an average pay reduction of nearly 30 percent.
While a number of leaders have discussed with me the possibility of also returning last year's incentive pay, I will not ask members of my team to return compensation earned before this economic downturn began. Instead, we should look ahead and develop a more transparent, less complex way of linking pay to performance. The current decade-old program is no longer the right one for OHSU, so I have asked our Board of Directors to either discontinue it or revise it substantially.
In the meantime, we must remain focused on managing in the midst of a deteriorating economic climate. In mid-December we learned that state budget reductions will result in a loss of slightly more than $1M to OHSU in the current fiscal year. This news is difficult, but not unexpected. The state budget is tight, and may become tighter if the economic downturn continues to reduce state revenue.
In the coming weeks, we will continue to review new data like this and develop institution-wide responses. Unit leaders have already received guidance on reductions. Their responses will vary by mission area and be implemented on slightly different timetables. In Central Services, decisions are being communicated from now through January; in other areas, announcements may occur through the spring.
I recognize that this process can create great uncertainty, and that it is easy in such circumstances to allow differences to separate us. OHSU is, however, a place where healing, teaching and discovery come together. We are unique not because we have a great hospital or an excellent university or world-class researchers—there are many places where any one of those things can be found. We are unique because of our capacity to bind these different enterprises together into something new.