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Home > Mercy News > Mercy announces minimum wage increase and employee pay raises
Published on December 22, 2020
Mercy Medical Center and MercyCare Community Physicians are pleased to announce that their Board of Trustees has approved a minimum wage increase, to $15.25 per hour, beginning in January. In addition, a general wage increase of 2% was approved for eligible employees during this fiscal year, also starting in January.
According to Nancy Hill-Davis, Mercy’s senior vice president and chief talent officer, these financial commitments reflect Mercy’s recognition of the important role all employees play at Mercy and MercyCare and acknowledgement of the critical services employees have provided in a particularly challenging year.
“Our staff and the services they provide are crucial to our community’s well-being,” said Hill-Davis. “This year really brought that to light and these changes are intended to reflect our commitment to and support of such an amazing staff.”
Mercy officials say this has been an extraordinarily challenging year for our entire community, with many healthcare workers called to the front lines in response to the global pandemic. This, coupled with the effects of the August derecho, helped prompt the change.
“We feel it’s important, now more than ever, that we demonstrate a strong commitment to employees, providing a fair wage that ensures they can support themselves and their families and be a sustaining force in supporting our local economy,” says Tim Charles, Mercy president and CEO.
“Despite extraordinary challenges, we’ve watched Mercy caregivers repeatedly step up to the plate to serve our community when it is needed most,” said Charles. “We want them to know we value them as our greatest resource. We hope this increase to our minimum wage and the wage increase illustrates our gratitude and thanks. We simply wouldn’t be where we are today without them.”
Mercy officials say these pay increases also underscore the importance of the hospital’s financial strength and its long-standing ability to taking a disciplined approach to financial decisions. And, while these changes are important, Mercy, like many health systems, still faces challenges as a result of the pandemic. An Iowa Hospital Association report indicates the financial impact of COVID-19 pandemic will cost Iowa hospitals $433 million.
“This past year has posed many challenges, yet we have forged ahead and continued to serve our community when it has needed us most. These pay increases help us remain competitive as an employer. But they mean more than that; they represent the progressiveness of our organization and allow us to hold true to the fundamental principles upon which this organization was built,” said Charles.