Iowa Medical Center Suspends 401(k), 403(b) Matches

The Mercy Medical Center in Sioux City, Iowa, has temporarily suspended its employer match contributions to employees’ 401(k) and 403(b) retirement plans.

Mercy Medical Center also instituted a pay freeze that will affect its senior leaders, directors, and managers, including its CEO, according to local ABC affiliate KCAU-DT.

Mercy is one of 19 hospitals within the Trinity Health System that will be temporarily suspending part of benefits packages, the news report said.

A hospital spokesperson told the television station that while the number of patients choosing the hospital for care is increasing, so too is the number that cannot pay for services because they are uninsured or underinsured.

A number of hospitals and health systems have adjusted benefits offerings in an effort to deal with the recession, including freezing pensions (see “Pa. Hospital Freezes Non-Union Pension Plan) and suspending employer contributions to retirement plans (see “Ariz. Hospital Cuts 403(b) Match).