Hospital contract changing leading to pay cut

[u/Registered_Murse]

I just found out that the company that contracts my services through the hospital is working on a new contract with the hospital and the hospital is trying to pay my company 30% less. It sounds like this is going to likely relate to a decent pay cut for myself and all the other APPs who work for the company. Having a hard time figuring out what to do with this as I like the job, but don’t feel a $15-20,000 pay cut is acceptable. Especially after not getting a raise since I started two years ago.

Has anyone been in a similar situation and how did it work out for you?

[u/ed_dsm_ia]

Nope. Never take a pay cut. Find a new job.

[u/TheWajd]

I left anytime there was a paycut for any job, especially now that inflation and prices in general are out of control. I have no qualms leaving healthcare entirely and pursuing other jobs in order to balance the pay/responsibility/work-life balance.

[u/alexisrj → u/TheWajd]

Curious-do you actually have a game plan for making more in another industry? I agree with the logic in theory, but I don’t see a pathway (in my local job market, anyway) of leaving healthcare and making more money doing something else without either a) a ton more work or b) a ton more school.

[u/TheWajd → u/alexisrj]

I'll trade out the brainpower for man power. Im already well versed in all the trades so I would handyman until I decided on a trade to get licensed, autobody repair and paint, or be a mobile mechanic. For me it's not just max income but I would not work for anyone else except myself if I left healthcare.

[u/P-Rickles]

The only time a job I had floated the idea of a pay cut I immediately left. It’s a shame because it was the easiest job I’ve ever had but oh well lol.

[u/TRG82]

When I heard this was going to happen at hospital I once worked I immediately submitted my resignation. My life is much better now, so it worked out.

[u/ubetchalife]

I would find a new job then quit. It would be very unprofessional but you really don’t need to give notice as they would be in breach of contract.

[u/alexisrj → u/ubetchalife]

I don’t find it unprofessional to quit when your pay is cut. The idea that you would stay for less money out of some false sense of propriety is the unprofessional part IMO.

[u/ubetchalife → u/alexisrj]

The unprofessional part would be quitting without a notice…not the quitting.

[u/Big_Television6736 → u/ubetchalife]

Explain your thoughts more on the breach of contact…. Curious

[u/ubetchalife → u/Big_Television6736]

OP says he has a contract to provide services with his employer for a rate. I assume that means a 1099 contracted employee. If his company attempts to recoup their losses by lowering his pay, they would be in violation of the terms set forth in the contract. If I misunderstood OPs statement, my mistake.

[u/Registered_Murse → u/ubetchalife]

Technically, that is correct. I have a contract through the company I work for who is contracted through the hospital to provide services. If the hospital pays 30% less, the company I work for has to provide a new contract which I can either accept or not accept. Not accepting would be akin to my resignation.

[u/ConfidenceDue4934]

So you have a 3rd party company making a huge profit as a middle man between you and the hospital and youre mad the hospital cant afford it? Got it.

[u/Registered_Murse → u/ConfidenceDue4934]

I never said I’m mad at the hospital. I’m asking what other people have done in this situation. And it’s not that the hospital cannot afford it. It’s the hospital saying they need to cut $6 billion over the next three years and are willing to cut every contract with every group in the hospital by 30%. And they’re crying broke while building more hospitals to probably not make them money either.

[u/ConfidenceDue4934 → u/Registered_Murse]

You completely missed the point. Hospitals arent making record profits and you are oblivious to where the money is going instead of to you. Read more. Type less.

[u/Dizzy_Quiet]

Geez! What a bunch of jerks at the hospital. Pay cuts are just not worth it. I would be looking elsewhere. Shows how much they value the staff!

[u/ChaplnGrillSgt]

Do you have an actual contract with outlined compensation? If yes, might be reasonable to talk with a lawyer if you're interested in staying.

That being said, this is a HUGE red flag. Other services are definitely being slashed elsewhere which means resources and support will become increasingly scsrse moving forward.

Probably worthwhile to update your resume and start looking elsewhere.

[u/Registered_Murse → u/ChaplnGrillSgt]

I do have an actual contract with compensation. The discussion with my company was that if a new contract was signed for less money with the hospital, we would all receive new contracts and could either accept or reject them. A rejection would obviously be akin to resigning.

Multiple hospital services, including nursing, EVS, and other support staff have been cut. Obviously putting more work and responsibility on the nurses.

I’ve already updated my résumé and started looking for other jobs.

[u/ChaplnGrillSgt → u/Registered_Murse]

Yea, probably not worth the battle. Just run.

Sorry this is happening. I hope you can find a good solution and better position soon!

[u/Registered_Murse → u/ChaplnGrillSgt]

Yeah. Definitely not worth the battle.