On December 14th several members of the Memorial Hospital-West Volusia Board of Directors and I received an anonymous communication through the mail. This communication is typical of some that we have previously experienced and includes numerous, apparently deliberate misrepresentations, and misinformation.
In an effort to keep you and your fellow commissioners better informed regarding these issues, I am forwarding the attached clarification communication that I prepared for the hospital board. Should you have any further questions and/or would like additional information, please let me know.
Enjoy the holidays and please accept my best wishes for the New Year!
Sincerely
Richard A. Lind
President/CEO
RAL/jm
Portman99Dec22
Enclosures
CC: WVHA Commissioners
In response principally to the Balanced Budget Act of 1997, Memorial Hospital-West Volusia, along with hospitals throughout the nation, was forced to completely reevaluate all aspects of financial operations this year. For example, this year's annual adjustment for Medicare reimbursement, Memorial Hospital-West Volusia's largest single revenue source, was a reduction of 2.75% (roughly half a million dollars in annual inpatient revenue). This decrease is in addition to the numerous other reductions associated with the Balanced Budget Act. Memorial Health Systems' response has been to analyze each expense and seek every avenue for revenue expansion to meet the challenge. During the intensive budgetary process that we called ``Success 2000'', every effort was made to be as fair and exuitable as possible. Patient care remained our first priority throughout. While the expense cuts needed to help Memorial Hospital-West Volusia weather this storm are difficult for all concerned, they were necessary to ensure our community hospital's long-term viability.
We recognize the difficulty the general public may have in
understanding some aspects of the complex financial challenges
all hospitals have had to accept this year. However, we cannot
allow unfounded rumors and incorrect accusations to go unanswered.
Public support is essential to our hospitals' employees, medical
staff and board; and it is crucial for our communities to work
together with us on an open and above board basis to maintain
our hospital.
We provide the following information to answer some of the untrue
rumors currently circulating in West Volusia.
1. ``You won't provide your pink lady meals.''
Volunteers provide highly valued and respected assistance for
patients and visitors at the hospitals they serve. For many
years now, it has not been common practice among hospitals
in Florida (to include Memorial Health Systems) to provide
free meals to Auxilians. Memorial Hospital-West Volusia has
not provided free meals to Auxilians for more than four (4) years.
2. ``You have now stopped matching your employee pension contribution.''
During the Success 2000 budgeting process, a committee of hospital
staff representing all three facilities reviewed all employee
benefits. While the hospital continues to fund the pension of
every participating employee, the committee recommended eliminating
a company-matching plan for employees' additional voluntary
contributions. The committee felt that this cut of the extra
pension match was more fair than reducing other benefits
(like health and dental insurance, which remained intact).
All benefit adjustment will be reevaluated during next year's
budget preparation.
3. ``You cancelled employee Christmas party and holiday gift
certificates, etc.''
In light of the cost containment issues,
the same benefit group mentioned above
mentioned above
recommended the Christmas Party,
which cost more than $ 35,000,
be cancelled this year.
This was also a recommendation frequently heard from hospital
employees who indicated they would rather not have the party
this year if it would help in ``saving a job.''
The Christmas party and gift certificates are not a ``benefit''
but a gift to our staff when financially feasible. There have been
times in the past when MHS has discontinued this gift for
short periods of time. The Memorial Hospital-West Volusia
Medical Staff graciously gave Holiday gift certificates
to all employees.
Another extra that was eliminated this year was the free coffee that the hospital had offered to employees in years past. While this was a popular premium, the total cost to the organization was approximately $100,000 (roughly the cost of two nurses.) Coffee is now available to employees for twenty-five cents and is free to auxilians.
4. ``Isn't employee appreciation still what makes a hospital run?''
As stated in the Memorial Health Systems mission statement,
``Employees are the foundation of our success.''
Hospital employees are recognized in many ways,
throughout the year.
Exemples include the Employee of the Quarter recognition,
the annual employee awards banquet,
and two local programs, ``Caught in the Spotlight: and Honor Roll'',
which provide both recognition and rewards.
5. ``We have developed a bad reputation for slip shod healthcare.
(I.e.: pool nurses, 5-8 hour stans in Emergency Department,
patient rooms closed due to lack of staff, etc.).''
Our community hospital's reputation has improved dramatically over
the last five year.
Patient satisfaction
scores continue to improve
each year.
The volume of letters and visits expressing displeasure
with services we provide has decreased significantly
while complimentary phone calls, visits and letters have
increased proportionately. The public offers numerous
positive comments at community events and Board of Director's
feedback has improved markedly over the past four years.
Utilization of licensed, experienced pool nurses (which is a common practice in Florida hospitals) has been necessary when we are unable to find qualified applicants to fill vacancies or to cover during high census swings. The hospital contracts with reputable agencies and frequently utilizes the same nurses for extended periods of time, to help provide qualified, competent staff. If there is any problem or concern relative to an individual's work, they are not rescheduled at our facility.
Despite Memorial Hospital-West Volusia's Emergency Department being the second busiest in Volusia County, patients' average length of stay in the Emergency Department is approximately 2.5 hours. This length of stay is well within national guidelines and significantly lower than some other area facilities.
6. ``Business is so bad that nurses are sent home in middle
of shift so you don't have to pay them.''
This year, admission to Memorial Hospital-West Volusia
increased nearly 8% over 1998.
Well-managed hospitals staff for average anticipated needs.
When unpredictable shifts in volume occur in any area of the
hospital, not just nursing, staffing is adjusted to work
load. When possible, employees may be ``floated'' to other
areas or other Memorial Health Systems facilities which may
require assistance. Employees may choose to utilize their
Personal Leave time or take the time off without pay when
this occurs according to the employee's choice.
7. ``You borrowed money from a bank to make payroll.''
This is not true. Memorial Health Systems has not
borrowed money to meet payroll in at least twenty years.
8. ``The morale at our facility is the lowest its ever been and
getting worse each day.''
Despite difficult circumstances,
Memorial's
core employees
have pulled together to face these challenges and understand
the basis for the difficult budgetary cuts made this year.
9. ``The $52 million bond money is spent.'' In August of 1996, Memorial Health Systems closed on a $48.6 million tax-exempt revenue bond issue. The net proceeds of this bond issue (after discount, fees, and insurance) was required by the Internal Revenue Service to be spent by July 1, 1999, as follows:
| Facility | Use | Percent of Total | Dollars |
|---|---|---|---|
| Ormond Beach | Routine Capital Equipment | 31.3% | $14.6 million |
| Flagler | Routine Capital Equipment | 2.3% | $ 1.1 million |
| West Volusia | Refund Authority Debt | 66.4% | $30.9 million |
| Expansion and Modernization | |||
| Total: | 100% | $46.6 million |
10. ``Lind is out trying to sell 49% of Memorial Health Systems
to raise money.''
There is no initiative to sell ownership of
Memorial Health Systems.
Perhaps this rumor is the result of a misunderstanding
of the joint ventures that our hospitals and others
across the nation have entered into to improve the breadth
and efficiency of health care services.
11. Independent release of executive compensation information
has raised questions about the appropriateness of Memorial Health
systems' salary structure.
[see salaries]
Federal law now requires public release of IRS form 990 which includes
listing of compensation for officers and directors of not-for-profit
corporations. When considering appropriateness of the pay structure,
it should be kept in mind that Memorial Health Systems is the largest
non-governmental employer in Volusia and Flagler Counties with annual
gross revenues of over half a billion dollars,
nearly 3000 employees,
and an annual payroll of nearly $100 million per year.
The Memorial Health Systems Board of Directors has a longstanding
policy of compensating all employees at a competitive yet reasonable
level compared to other hospitals, both locally and nationwide,
based on independent market evaluations. The pay plan for all
employeesincluding executive personnelis geared towards
paying at the median level on a market comparative basis.
All aspects of the compensationplan are reevaluated annyally.
December 17, 1999.
The material above was provided by
The material was re-keyed and adopted for web display by Tanner Andrews, one of the Taxpayers of Volusia County. Most of the errors (eg: ``Dear Mr. Jeff'') and linguistic infelicities are original with Mr. Lind. Transcription errors are purely the fault of Andrews, of course.
Release of this information is done in the way of a paid political advertisement provided by Tanner Andrews, P.O. Box 1208, DeLand 32721, independent of any campaign or committee. No candidate has approved this material.