Arkansas Children’s Hospital announced today a number of spending cuts, including 25 layoffs and elimination of 17 more unfilled positions, to cope with a revenue decline linked to coronavirus.

The release:


From Fred Scarborough, CFRE
Executive Vice President
Chief Communications Officer
Arkansas Children’s

“We are collectively living through the most difficult health crisis of our lifetime. As a direct result of the impact of COVID-19, Arkansas Children’s has experienced a decrease in patient volumes and a reduction in workload for some team members. There is every indication that these changes in volume and workload will last through June 2021.

Today, we announced a series of cost-saving measures to ensure uninterrupted service to the children of Arkansas and beyond:

  • 20% reduction in executive compensation for fiscal year 2021.
  • 10% reduction in director compensation for fiscal year 2021.
  • Mandatory reduction of all external travel costs through June 2021.
  • Elimination of select contracted services.
  • Significant reduction of onsite catering and sponsored event expenses.
  • 50% reduction in minor equipment expenditures through June 2021.
  • 30% reduction in capital expenditures through June 2021.
  • Elimination of traditional merit pay program for all staff through June 2021.
  • Required Executive Vice President approval for any new hire. Only strategically essential positions may be hired.
  • Elimination of 42 positions across Arkansas Children’s. 17 of the 42 positions are currently vacant. 25 of the position eliminations impact a team member with whom we have already met individually to discuss.

Arkansas Children’s is offering severance benefits and outplacement services to the employees whose positions were eliminated to help them pursue new career opportunities.

Again, these difficult actions are through no fault of any employee, but rather a direct result of reduced workload due to the impact of COVID-19.”