Cleveland (AP) -- While other employers are cutting pay, the Cleveland Clinic has announced it will give raises averaging 3 percent to about 35,000 full- and part-time employees.

The hospital system says it's able to boost its annual payroll by an estimated $60 million thanks to cost cuts coupled with an increase in business. Spokeswoman Eileen Sheil says the Clinic's doctors have been booking more patients, with some coming from across the country and around the world.

The merit raises will begin showing up in employees' paychecks in August.

The Clinic had announced a pay freeze and had restricted hiring in December. The hiring freeze remains in effect, though the hospital system is taking on new employees in critical areas such as nursing.

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