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Analysis

Community Health System Executives Donate $1.5M to Employee Charity During Pandemic

By Melanie Blackman  
   April 08, 2020

Voluntary reductions in pay and additional contributions will support the CHS Cares Fund to provide financial assistance for employees during the COVID-19 pandemic.

In a United States Securities and Exchange Commission Form 8-K signed by Chairman and CEO Wayne T. Smith today, Community Health System, Inc. (CHS) executives and director-level employees have volunteered to take pay reductions so the organization can use that money as a donation to the CHS Cares Fund.

The CHS Cares Fund is a charity that provides financial assistance to CHS employees "who have experienced hardship due to events beyond their control (which would include the COVID-19 pandemic)."

The $1.5 million contribution will come from voluntary reductions in pay, including a 25% reduction in Smith's base salary for the remainder of 2020. Other executive officers have voluntarily agreed to a 10% reduction in base salary for the remainder of 2020. Corporate officers and regional presidents have taken a similar voluntary reduction in base salary, and non-management directors have voluntarily agreed to a 25% reduction of the annual cash stipend paid to directors in 2020, according to Form 8-K.

Additional donations to the CHS Cares Fund include approximately $1.25 million from the CHS Foundation, which is "a foundation funded by charitable gifts from the company." Smith will also personally donate $200,000 to the CHS Cares Fund, bringing the total donations to an estimated $3 million dollars.

THE CHS Cares Fund is administered by The Community Foundation of Middle Tennessee, a Section 501(c)(3) charity.

Melanie Blackman is the strategy editor at HealthLeaders, a Simplify Compliance brand.

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