Obamanation
Silver Member
- Sep 6, 2012
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Today, I recieved this email from the administrator of my hospital. It's a long read but it kept my attention!!
Good Afternoon;
With the opportunities we have each day to impact the lives of so many people, I am certain each of us appreciates how much it means to our patients and their families that so many great people chose to make *********** Medical Center the place they apply their professional skills and compassion. Our hospital has so much to offer, in part because we have invested in services and technology -- but more importantly, because we have such great people delivering the care. The importance of our work together cannot be overstated.
With this in mind, I was deeply disappointed our nations elected officials failed to achieve a budget agreement on this year's spending plan in Washington. Rather than passing a responsible budget, they instead chose to do nothing, with the result being the imposition of what is now known as the "sequestration".
Sequestration is an automatic budget-cutting mechanism that went into effect April 1 due to the failure to pass a budget. Among the many cuts to discretionary spending, sequestration also includes more than $11 billion in cuts to health care providers through the Medicare program in the year 2013. Absent Congressional action, which we hope will come before the next fiscal year that begins October 1, the sequestration will continue through 2022, with the Medicare cuts growing to $16 billion a year.
It is important to note that sequestration cuts are happening in addition to the provider cuts that are occurring due to the implementation of the Affordable Care Act. These cuts are intended to help reach a reduction in the Medicare spending of $716 billion over the next 10 years.
As a result of sequestration and the cuts related to the Affordable Care Act, hospitals across the nation are being forced to adjust their cost structures. In fact, according to a joint study released by the American Medical Association, the American Hospital Association and the American Nursing Association, it is estimated that sequestration alone will lead to more than 212,000 direct job losses in the health care industry during the period of sequestration.
As a leader of our hospital family, it is my hope to avoid job losses to the extent possible. As you know, it has been our objective to be efficient and to provide the highest quality of care, and that objective remains. In order to accommodate the further cuts from sequestration, we are taking some steps that I feel are necessary to avoid more difficult reductions. We are implementing the following three initiatives, which impact all of us, including myself:
1. All merit increases will be considered in January rather than September, 2013.
2. Accruals for vacation will cease until October 1, 2013. You may certainly use your accrued vacation time, but effective immediately and through September 30, there will be no additional vacation accruals. Accruals will resume October 1. Associates who have a planned vacation and do not have enough hours banked will be allowed to have a negative balance of 24 hours.
In addition, we are making the following change to our vacation policy:
Associates are encouraged to utilize their accrued vacation time to achieve an appropriate work/life balance. Effective, January 1, 2014, Associates may accumulate up to 100% of their annual vacation time amount by combining current accruals with unused accruals from prior years. One hundred percent (100%) of the annual vacation accrual is the maximum number of hours that may be banked.
For the period between June 1, 2013-December 31, 2013, Associates will be given the opportunity to decrease their current vacation balance to an amount equal to one-half of their annual accrual rate. Associates may decrease their time by taking vacation or by participating in the vacation buy-back program, which will be extended through June 15th.
3. Earlier this year, we had made the decision to increase your 401-K match by 1/2%. With the changing circumstances, we must reconsider this additional cost. That said, you will continue to receive the current 1% match for your retirement.
I truly regret these steps must be taken, but I also believe it is preferable to reducing our workforce. Certainly, if the situation in Washington changes, we will adjust accordingly.
Our company's Government Relations function has been working with hospital associations and other provider partners to educate members of Congress and our state legislature on the impact of these decisions on our industry. It is our plan to let you know when and how you might be able to help communicate with our representatives. Many of you already have done so, and we encourage you to continue. Our legislators and representatives do need to hear from us, because we are all impacted by these decisions.
I will be rounding over the next few days to answer any questions you might have. I am truly grateful for your hard work and commitment to our patients, and I pledge to work side by side with you as we get through this difficult time.
Good Afternoon;
With the opportunities we have each day to impact the lives of so many people, I am certain each of us appreciates how much it means to our patients and their families that so many great people chose to make *********** Medical Center the place they apply their professional skills and compassion. Our hospital has so much to offer, in part because we have invested in services and technology -- but more importantly, because we have such great people delivering the care. The importance of our work together cannot be overstated.
With this in mind, I was deeply disappointed our nations elected officials failed to achieve a budget agreement on this year's spending plan in Washington. Rather than passing a responsible budget, they instead chose to do nothing, with the result being the imposition of what is now known as the "sequestration".
Sequestration is an automatic budget-cutting mechanism that went into effect April 1 due to the failure to pass a budget. Among the many cuts to discretionary spending, sequestration also includes more than $11 billion in cuts to health care providers through the Medicare program in the year 2013. Absent Congressional action, which we hope will come before the next fiscal year that begins October 1, the sequestration will continue through 2022, with the Medicare cuts growing to $16 billion a year.
It is important to note that sequestration cuts are happening in addition to the provider cuts that are occurring due to the implementation of the Affordable Care Act. These cuts are intended to help reach a reduction in the Medicare spending of $716 billion over the next 10 years.
As a result of sequestration and the cuts related to the Affordable Care Act, hospitals across the nation are being forced to adjust their cost structures. In fact, according to a joint study released by the American Medical Association, the American Hospital Association and the American Nursing Association, it is estimated that sequestration alone will lead to more than 212,000 direct job losses in the health care industry during the period of sequestration.
As a leader of our hospital family, it is my hope to avoid job losses to the extent possible. As you know, it has been our objective to be efficient and to provide the highest quality of care, and that objective remains. In order to accommodate the further cuts from sequestration, we are taking some steps that I feel are necessary to avoid more difficult reductions. We are implementing the following three initiatives, which impact all of us, including myself:
1. All merit increases will be considered in January rather than September, 2013.
2. Accruals for vacation will cease until October 1, 2013. You may certainly use your accrued vacation time, but effective immediately and through September 30, there will be no additional vacation accruals. Accruals will resume October 1. Associates who have a planned vacation and do not have enough hours banked will be allowed to have a negative balance of 24 hours.
In addition, we are making the following change to our vacation policy:
Associates are encouraged to utilize their accrued vacation time to achieve an appropriate work/life balance. Effective, January 1, 2014, Associates may accumulate up to 100% of their annual vacation time amount by combining current accruals with unused accruals from prior years. One hundred percent (100%) of the annual vacation accrual is the maximum number of hours that may be banked.
For the period between June 1, 2013-December 31, 2013, Associates will be given the opportunity to decrease their current vacation balance to an amount equal to one-half of their annual accrual rate. Associates may decrease their time by taking vacation or by participating in the vacation buy-back program, which will be extended through June 15th.
3. Earlier this year, we had made the decision to increase your 401-K match by 1/2%. With the changing circumstances, we must reconsider this additional cost. That said, you will continue to receive the current 1% match for your retirement.
I truly regret these steps must be taken, but I also believe it is preferable to reducing our workforce. Certainly, if the situation in Washington changes, we will adjust accordingly.
Our company's Government Relations function has been working with hospital associations and other provider partners to educate members of Congress and our state legislature on the impact of these decisions on our industry. It is our plan to let you know when and how you might be able to help communicate with our representatives. Many of you already have done so, and we encourage you to continue. Our legislators and representatives do need to hear from us, because we are all impacted by these decisions.
I will be rounding over the next few days to answer any questions you might have. I am truly grateful for your hard work and commitment to our patients, and I pledge to work side by side with you as we get through this difficult time.