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There is a 10 million unallocated fund for any modernization we might undertake. The fund is used for capital improvements, including building a new ER facility. The problem we face is that we have used that fund to pay employee salaries for the last few months and will continue to do so until the end of the month (May 15). Our facility is starting to get too busy and the administrators have decided that it is better to cut back some of the salaries and see if we get less doctors in the ER and can re-allocate that money to the new ER facility. In other words, how can we continue to pay the salaries until the end of the month? Should we cut them and leave it for May? If we cut them, how can we maintain the funding for the new ER facility? Do we have any options other than salary cuts and reallocation? A: I'm not sure if you are an ER doctor, or a nurse. But, we run a hospital, and we need money. Not that I like that, but that is the way it is. I would recommend that you work to get the new ER ready, and then, in the new year, when the summer and year-end dollars are rolling in, the hospital can re-evaluate the situation. We pay for services based on the need. If the new ER is needed, then they will come. If not, then we'll have to try to find other sources of income. A great deal of this will depend on the state. Some states offer reduced funding to hospitals with full ERs. In Arizona, this is the situation. If not, you may have to reduce services and equipment. It may be that there is no solution, and you may need to be looking for another employer. To answer your question more directly, if you cut salaries then you are not paying for services, and you are not able to provide services. I'm not sure what the state requirement is on you, but you may need to make a decision on your part to reduce services, or look for a new job. 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