Iowa: Computer glitch delays pay for 4200 Mercy employees : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

Computer glitch delays pay for Mercy employees Workers using direct deposit must wait until Monday before their accounts are credited. By KATHY BERGSTROM Register Business Writer 07/21/2001

-------------------------------------------------------------------------------- About 4,200 employees at Mercy Medical Center must wait until Monday before Friday's paychecks are deposited due to a direct deposit glitch.

The Des Moines hospital said a communication breakdown between a processing agent for electronic transfers and the Federal Reserve Bank of Chicago meant employees' paychecks were not electronically deposited as expected.

Gregg Lagan, a Mercy spokesman, said the effect was regional but a Federal Reserve spokeswoman was unsure how widespread the problem was. A Mercy news release said other central Iowa businesses were affected.

Mercy employees without direct deposit - about 70 - received paychecks Friday as normal.

Mercy employees learned of the problem Friday by memo. Hospital officials are working with banks to avoid overdraft charges that might be incurred due to the error, Lagan said.

Mercy conducted its normal payroll processing, and the information was sent in a timely manner, Lagan said.

Suzanne Heffner of the Federal Reserve Bank of Chicago said an electronic file transfer was delayed and the bank is working to resolve the problem. She could not confirm Mercy's description of the problem and said the bank is still trying to determine why the delay occurred.

-- Carl Jenkins (, July 25, 2001

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