ROCKFORD – Mercyhealth said Wednesday that it is cutting salaries of its leaders by 10% as a result of the COVID-19 pandemic and challenges from Medicaid.

The health system also announced in a news release that there would be some reductions in physicians’ pay.

Mercyhealth previously had announced furloughs for employees not involved in direct patient care, as well as administrative, outpatient and clinic areas.

Even before the COVID-19 crisis, Mercyhealth was dealing with major Medicaid reimbursement challenges in Illinois that have “momentous financial impact,” the health system said in a news release.

Mercyhealth also will work to realign some services in anticipation of changing volume. For example, the system will right-size clinic operations as physicians and other providers make wider use of telemedicine.

“While we all know these actions are not easy, we also know we need to make these adjustments in order to adapt to the massive changes to our business,” Javon Bea, president and CEO of Mercyhealth, said in the news release.

Georgette Braun:; @GeorgetteBraun