No Across-The-Board Raises Set, But Some To Get Higher Pay
posted June 27, 2008
Some 25-40 Erlanger Medical Center employees are set to lose their jobs as the hospital tightens up after a year that saw over $12 million in losses.
Erlanger officials said they hope to find other jobs at the hospital for some 60 percent of the 25-40 affected employees.
There will be no across-the-board pay increases at this time, but the hospital is setting aside some $2 million for targeted raises for "critical staff positions."
The Erlanger Board on Thursday night unanimously approved a new budget that includes the reductions.
It also includes a five-percent rate increase.
Jim Brexler, CEO, sent this memo to employees:
Dear Fellow Employees:
Tonight the Erlanger Board of Trustees approved the budget for fiscal year 2009 which begins July 1.
This has been an unusually challenging year. Over the last two years we experienced 10% growth in volume. This past year growth in inpatient volume slowed to only 1%. Our expenses, however, continued to climb. Further challenging our initiatives were the additional $6 to $8 million in uncompensated care costs. Simply put, this past year our expenses exceeded the limited growth in revenues. Many organizations are having to tighten up during these difficult economic times, and Erlanger must tighten up as well.
All of you are aware of efforts to flex our staffing levels to meet both our standards of patient care and our financial goals. Through careful analysis of unfilled positions, retiring employees, normal attrition and consolidation of duties, we have reduced expenses and achieved many efficiencies. Despite these efforts, out of over 4,000 employees, we estimate that there may be approximately 25 to 40 employees whose current jobs will be affected by these reallocation measures. Our priority will be to offer reassignment to those employees affected by these changes where additional staff are needed.
Additionally, our current financial position does not allow for across the board raises for employees at this time. However, some dollars have been set aside for market adjustments of critical staff positions to ensure that patient care is prioritized and experienced staff are retained. My commitment to each of you is that we will review our financial position half-way through the fiscal year and determine if across the board raises can be made. These decisions followed thoughtful analysis of our organizationʼs needs, and no decisions were made lightly or without awareness of the impact on individuals.
We must continue our focus on productivity, elimination of agency staffing, and effective management of overtime, supplies and other expenses. Financial discipline and teamwork have never been more crucial. I will be conducting a series of town hall meetings to discuss this and other information beginning shortly after July 4.
Our Erlanger family is strong and resilient. Together we can make the coming year very successful. Most importantly, we can continue providing much needed services to our community. We make a difference in the lives of families throughout this region. While challenging, that is an honor and a commitment that demands our very best efforts. I appreciate your hard work, as well as your support, as we step forward into the new fiscal year.
Sincerely,
Jim Brexler
President & CEO
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