Glimmer of hope
As we finish up the year, we face many tough challenges for 2007. Floyd Memorial has struggled more this year than any year I can remember since I began with Staff privileges in 1992.
But there is good news amongst all of the negatives we have seen and heard for the past few years.
The reports coming out of Floyd are saying the CFO at Floyd Memorial has been terminated even though the official report will state a resignation!!
Why now is a question being raised?
The answer in my opinion is very plain to those who have been following the situation. The finances are poor, the leadership is lacking and the CEO is trying to save his own hide by "sacrificing the lambs".
He has terminated a 40 plus year tenured nurse, now the CFO and many are wondering who will be next.
This is all to make it appear like he is taking control of the sinking ship and to shift blame to others while attempting to divert attention from his own failures.
This in my opinion also demonstrates the character of the individual. His survival mode is taking over so everyone will need to be extremely cautious.
I've been saying for several years that it didn't have to be like this. We could have had a smooth transition if some on the Board would have taken their responsibilities more seriously.
These recent events are in addition to the fact we have a new County Commissioner (Mark Seabrook) who seems truly concerned with what is happening to our local hospital.
He will now be the second Republican and hopefully he and Steve Bush will begin the paradigm shift and transition from appointing friends or political advocates to appointing the best qualified individuals for these very important positions.
Chuck Freiberger will be in the political minority for the first time in his career. We will be anxious to see how he handles this new reality.
The new Commissioner will be replacing Bob Kleehammer and Darryl Mills with two additional Board Members. One or both should be physicians.
Darryl Mills will be embarking on his new job as Sherriff and Bob Kleehammer has served two terms and will unlikely be given another.
All of these recent events plus the addition of two new Board members along with the recent two just added certainly gives physicians and staff something to look forward to. There may finally be enough “new blood” to make some appropriate changes.
I still encourage any interested party to submit a letter to the Commissioners for consideration in either of these two Board appointment positions.
The Commissioners have received at least two recent letters from employees in management validating the things posted on this blog for the past year.
I am confident we have made a difference and facilitated some of the changes we are seeing. Getting the information out and informing those in positions of leadership does make a difference!!
But there is good news amongst all of the negatives we have seen and heard for the past few years.
The reports coming out of Floyd are saying the CFO at Floyd Memorial has been terminated even though the official report will state a resignation!!
Why now is a question being raised?
The answer in my opinion is very plain to those who have been following the situation. The finances are poor, the leadership is lacking and the CEO is trying to save his own hide by "sacrificing the lambs".
He has terminated a 40 plus year tenured nurse, now the CFO and many are wondering who will be next.
This is all to make it appear like he is taking control of the sinking ship and to shift blame to others while attempting to divert attention from his own failures.
This in my opinion also demonstrates the character of the individual. His survival mode is taking over so everyone will need to be extremely cautious.
I've been saying for several years that it didn't have to be like this. We could have had a smooth transition if some on the Board would have taken their responsibilities more seriously.
These recent events are in addition to the fact we have a new County Commissioner (Mark Seabrook) who seems truly concerned with what is happening to our local hospital.
He will now be the second Republican and hopefully he and Steve Bush will begin the paradigm shift and transition from appointing friends or political advocates to appointing the best qualified individuals for these very important positions.
Chuck Freiberger will be in the political minority for the first time in his career. We will be anxious to see how he handles this new reality.
The new Commissioner will be replacing Bob Kleehammer and Darryl Mills with two additional Board Members. One or both should be physicians.
Darryl Mills will be embarking on his new job as Sherriff and Bob Kleehammer has served two terms and will unlikely be given another.
All of these recent events plus the addition of two new Board members along with the recent two just added certainly gives physicians and staff something to look forward to. There may finally be enough “new blood” to make some appropriate changes.
I still encourage any interested party to submit a letter to the Commissioners for consideration in either of these two Board appointment positions.
The Commissioners have received at least two recent letters from employees in management validating the things posted on this blog for the past year.
I am confident we have made a difference and facilitated some of the changes we are seeing. Getting the information out and informing those in positions of leadership does make a difference!!
posted by Anonymous at 6:01 AM
96 Comments:
HB, your ego seems to be well rested from the holidays and raring to go again.
You wrote;
"Why now is a question being raised? The answer in my opinion is very plain to those who have been following the situation. The finances are poor, the leadership is lacking and the CEO is trying to save his own hide by "sacrificing the lambs"."
You also wrote:
"He has terminated a 40 plus year tenured nurse,"
Were you consulted on either of these personnel actions? Do you have any ACCURATE first hand information about the reasons for either action? You are making assumptions based on your own predjudices and creating a context for them based solely on how you see things. You are no better than a hallway gossip.
Finally, you wrote that "I am confident we have made a difference and facilitated some of the changes we are seeing." That is a hilarious display of ego from the use of the royal "we" to the idea that your biased opinions are driving executive decisions.
DiogenesTrainee
I see the holiday break certainly did nothing to overcome your bias. Your rose colored glasses must get thicker with each passing moment.
I actually have copies of two letters sent to the County Commissioners from hospital employees. Along with the letters, I have emails, phone conversations, notes etc. that verifies I am not alone in this endeavor.
I will reiterate what I have said repeatedly.
Things did not have to happen like this. We could have had a smooth transition in leadership without these “terminations” and impending “layoffs”.
I also said in many postings that these things would not occur until the financials became a problem. It is sad and unfortunate.
I’d encourage you to go back and read. You may actually learn something.
HB,
Upfront, I don't know the answers. However, you did not answer diogenestrainee's questions.
"Were you consulted on either of these personnel actions? Do you have any ACCURATE first hand information about the reasons for either action? "
Saying that you have copies of letters, along with emails, phone calls, etc. from employees does not answer the questions. You will find disgruntled employees in any organization.
You may be correct in your assumptions. I recognize that, but they are still assumptions unless you answer the questions.
Why would I be consulted on a personel issue and why does that even matter?
These are the events whether any of you are willing to admit it.
As a previous Board member, I do have much first hand information on problems that have occured and continue to occur.
The financials speak for themselves, and impending "layoffs" and staff cuts were addressed in the paper about 10 days ago.
Try and look at all of the available objective evidence and get rid of your personal dislike for me.
It is not hard to put the pieces together.
HB, you are one slippery dude!
You ask: "Why would I be consulted on a personel issue and why does that even matter?"
Well, it matters because you continually bring up personnel issues and draw conclusions from them that management is screwing things up. Unless you really know what contributed to those personnel actions, you have no idea whether they were good decisions or not. In the absence of that knowledge, you are just a gossip who twists things to suit your predetermined conclusions.
By the way, I don't even know you, so how could I dislike you? What I dislike are your methods and your biases. You obviously "dislike" the hospital CEO and that dislike colors your views on everything, good or bad, that happens at the hospital. Financial ups and downs are a way of life in most businesses and do not necessarily reflect poor management. Otherwise, how would you characterize the income reductions and cost pressures you have reported in your own practice?
The staff was shocked with the news yesterday. It went through the hospital like a wild fire.
It is long overdue. We are sure they could have fired him long ago and the timing is very suspicious.
There has not been any formal announcement but everyone is talking about it.
My director is very concerend about who is next on the chopping block.
diogenstrainee,
Get a life!
Your continued attacks are getting old and you appear to be very frustrated with a bigger dislike of HB than he has for the CEO.
He is at least willing to be open about his comments.
I also work at Floyd and these are truthful events that are affecting many many employees.
We believe this was a good change and more need to be eliminated starting with the CEO.
I do not generally see Diogenes' comments to be biased as much as I see them as calling for accountability and objectivity. He may not always agree with HB, but nor does he often directly disagree with him. These are heated debates, but let's not assume that everyone is jumping to take sides on every issue.
diogenestrainee and the last anonymous commenter.
I rarely call people names, but there is a definite agenda with diogenestrainee and he/she is an idiot.
There is enough objective evidence presented on this site in the past year to make a documentary.
Where are you seriously coming from??
Why are you so blinded and/or biased??
Who do you think you are fooling??
Where does your information come from?? How are you informed?? If you have no source, then you are just spouting off.
Anonymous 11:08. You haven't read my postings very carefully. I have no inside information about the hospital and I have NEVER claimed to know why decisions were made or attribute motives to hospital administration. I have commented only on what I can see with my eyes and what I have read on this site. Your hero, HB, on the other hand constantly speculates on motives and is quick to describe them in a sinister way. Today, he has criticized two personnel actions. I have no idea what triggered those and I will be that he doesn't either. But that didn't keep him from using them to support his contention that the CEO should be replaced.
Maybe HB does know. He did serve on the Board for 4 years and has remained extremely active in multiple committees.
He has a better understanding than you or I will ever have.
I do not always agree with him, but do understand he has a perspective that you or I will never have.
That does have credibility, but your hatred would never allow you to admit it.
Anonymous 11:30,
First of all, HB was only on the board for two years, not four. And, yes, he has a perspective...one driven by his intense dislike of the current CEO. Why would I want to follow the recommendations of someone who has never run a hospital (or any other large organization)against the demonstrated ability of the current CEO to build a first class healthcare facility that has been more profitable than its peers in this market? Every employee has some gripe about the place he/she works. But you would almost have to be blind and deaf to miss the incredible growth and success of our community hospital over the past ten years.
Again, your ignorance of the facts are quite evident.
HB did in fact serve 4 years on the Board.
HB has also served on nearly every committee in the hospital and actively participates in helping us employees fix problems that the administration continually creates.
Your information is faulty and your hatred is blinding you. Your character also is questionable.
It only seemed like four years. It was actually two.
What is the name of the 40 plus year tenured nurse that was terminated?
The answer is 4 years. I was appointed in January of 2002 and served until January of 2006.
The anonymous commenter who is stating 2 is mis-informed.
The nurse referred to is Sue Bline. She is a wonderful person and deserved more respect for her years of service.
Again, you may be absolutely correct but is it your contention that the only reason a 40 year employee could be terminated is "blame shifting".
What does "tenured" mean? Are you suggesting that some kind of guaranteed employment contract was violated? . Are you saying that this person was terminated for no reason? Have you been involved in supervising her? Have you read her performance reviews? Exactly how is it that you are qualified to decide that she was not treated properly?
Regarding Ms. Bline: I don't know the lady, but I will take your word for it that she is a wonderful person. Is that a sufficient qualification to hold a nursing position?
Do you really think a doctor should make public comments about a hospital personnel decision unless he is completely familiar with the circumstances surrounding that decision?
It is rare that an employee with this many years of service at any company would have been kept around if they were not doing their job at least somewhat adequately.
And for clarity, neither of these individuals were officially fired, but asked to submit resignations. If there a difference is up to you to decide.
Even if they were not meeting all expectations, an employee with this many years of dedicated service should be treated with respect.
Her treatment characterizes how this administration has continually destroyed relationships with its workers and its physicians.
The postings in the past couple of years have been very straightforward. This type of behavior was anticipated and is occuring now that the financials are beginning to plummet.
Once again;
IT DIDN'T HAVE TO BE LIKE THIS
You wrote:
"Even if they were not meeting all expectations, an employee with this many years of dedicated service should be treated with respect."
Could you elaborate on how she was treated disrespectfully and how you would have handled it differently? Do you know if she was given an opportunity to improve her performance before the termination process was initiated? Again, are you sure you know enough about what happened to say that it was handled improperly? Usually, personnel issues aren't discussed publicly except on the gossip mill, so you may not have all the facts.
For clarification, how was the employee not treated with respect? I have been asked to resign before and was treated very respectfully. It can happen. Being asked to resign is not necessarily disrespectful.
I have spoken with her personally and do believe I understand how she feels. I will leave it at that. I have known her and worked with her since 1978.
As far as commenting publicly, I would make positive comments about anyone I think is deserving. But unless the individual is a public official or in the public arena as is our CEO, I believe negative comments should be minimized unless the individual is attacking you personally as frequently happens on this site.
None of you are addressing the real issues of the blog.
The hospital is in trouble. What do you think is the reason?
I've given numerous examples, statistics and facts. You continue to question everything else and avoid the real discussion
HB, I have to tell you that I think you have crossed an ethical line here. I am really troubled by the fact that you are questioning a personnel decision when you can only have, at most, one side of the story. Jumping to the conclusion that a private matter wasn't justified seems irresponsible to me.
There is one good thing about banging your head against the wall--it feels so good when you stop.
For today, I stop.
You wrote:
"I have spoken with her personally and do believe I understand how she feels."
What in the world does that prove???? Since when does anyone losing his/her job feel good about it? Is anyone in that situation really capable of providing a balanced account of what lead up to the termination? The above posters are right. You are really out of line putting yourself in the middle of a private personnel matter. It is one thing to offer sympathy and support to someone losing a job. It is something way beyond that to suggest in a public forum that an employee was treated disrespectfully or unfairly when you lack all the facts. That is not my idea of "straightforward." It is pure rabble rousing.
HB,
quit wasting your energy with these people.
You have done a great service for the community by getting this information out.
I know for a fact it has made an impact. I have friends at many levels of the local government and at the hospital.
You have made certain people more accountable and it is a shame you have taken so many personal attacks without justification.
Keep the public informed. It does matter.
Regarding: "The hospital is in trouble. What do you think is the reason?"
I would assume that revenue and/or expense projections turned out to be incorrect over the past year. Happens all the time in the best of companies. Hardly makes anyone evil or criminal though. And I haven't seen anything that makes me think the hospital is in trouble. It is still profitable and management is taking the necesary steps to get expenses in line with income. I think you just like to exaggerate. Was your practice "in trouble" when your costs continued to increase and you were complaining about reduced reimbursements?
I want to know who died and left the job of determining what is appropriate or what constitutes stepping over a line to these bozo's.
They have a lot of nerve acting as if they are so righteous.
HB is exactly right.
There are so many problems at Floyd, it is hard to know where to begin.
HB is right, the CEO is saving his own hide. All heads will roll except his.
The CFO was and is extremely talented - he'll be an asset to another organization, truly a loss for Floyd.
The CEO should've thought about asking a different VP to resign, say the one that is responsible for contracting and physician relations, who has a history of failed initiatives at Floyd: the PHO from years ago, Occupational Health in Corydon, Occupational Health in New Albany, our extremely poor efforts at aggressive contracting (remember CIGNA? didn't our (ex) CFO had to intervene to save that one?). Have you seen our reimbursement rates? Dismal.
Most importantly, the ongoing tumulutuous relationships between administration, which is also his responsibility. Looks like poker games and a round of golf aren't cutting it.
The true talent is leaving the building.
"He has terminated a 40 plus year tenured nurse, now the CFO and many are wondering who will be next.
This is all to make it appear like he is taking control of the sinking ship and to shift blame to others while attempting to divert attention from his own failures."
If it looks like a scapegoat, acts like a scapegoat, it is a scapegoat.
The CEO is out for his own well being, not the well being of the physicians, not the well being of his dedicated VPs, not the well being of the county, and not the well being of the employees.
Very evident by his actions this week. I believe HB referenced his character - how true!
I have read this blog often and I have to agree, after reading his comments, Dr E does appear to have an agenda. He seems to be wearing blinders when it comes to the CEO. However this time I must agree that Hanson is attempting to save his hide by pretenting to take control of a sinking ship and shifting blame all with one stroke of the pen. I also agree that he is 'sacrificing the lambs'.
It is, however, very disheartening that the WRONG LAMB WAS SACRIFICED!!!!
As for Sue, I know her and have worked with her. There is no way they had a good reason for 'asking' her to retire early. She was screwed-that is disrespectful in and of itself....END OF STORY
Looks like the complainers have only complaining in common. One poster wrote: "The CFO was and is extremely talented - he'll be an asset to another organization, truly a loss for Floyd." Of course, HB has long been critical of the departing CFO and wanted him out a long time ago. And then another poster (I guess it is another one) wrote: "The CEO should've thought about asking a different VP to resign, say the one that is responsible for contracting and physician relations, who has a history of failed initiatives at Floyd." That refers to someone who has been singled out for praise by HB several times.
Lots of different realities at play here.
I am very much familiar with the day to day operations and the financial status of the hospital to include the involvement of the board of directors.
From an insiders view, the CFO was
micro-managed and was not allowed to do his job. He did the best job he could do with the limited amount of rope he was given. How can you make lemon aid out of rocks?
He had restrictions placed on him from the CEO who in return was probably only trying to passify a hospital board versus putting his own head on the chopping block.
Lets put the blame on the right parties. Forget the CEO, the board of directors made the ultimate decision or pursuaded the CFO to make the decision.
Remember who we are dealing with public. A board of directors that outside of Bob Kleehamer had little or no experience in SUCESSFULL public finance.
Oh yeah Kay Garry is the City Controller, but she cant keep her own shop clean let alone someone elses. Then there is Darryl Mills who never opened his mouth at a meeting but loved to tell people in his Sherrif Campaign how much he did for the hosptial expansion. (yeah right)
This place has many more problems that can not be placed just on the CFO.
You want some heads to roll then so be it, but lets also include the V.P over Contracts. Just a hint, its not the same as the CFO, but it should have been all along. Maybe then we could get contracts that actually benefited the hospital versus the contract that gives the V.P the best seats for the Kentucky Derby.
You want to improve financially, then lets get rid of some services that are true money losers for the hospital. Joslin, HomeHealth. They dont make money, sure its a public service, but this is a business!
Good Luck CFO, You will land on your feet and maybe ths time you will be allowed to do your job.
First of all, thank you Sue Bline for the 40+ years you gave to FMHHS. You were always known for running a tight and efficient ship. You will be missed. Next, those of you that keep speaking out and claim not to have an inside interest need to get a life. Unless you are lying (which I think is very possibe) you cannot know or understand as much as HB or the associates affiliated with the hospital. I can recall a number of years ago when Baptist East Hospital was facing a budget crisis. As a way of saving the budget they forced several long time staff (those making the higher wages) to resign, then filled their positions with new staff at a lower wage. Some were invited to reapply for positions, but at a much less hourly rate.
I have to say, this blog is quite comical. I always find it humorous that people honestly believe that other people care what they think. How arrogant. I would hate to be in charge of you people in an organization with such an important responsibility as a hospital. You would be impossible to manage. Everyone's an expert...
This is my third posting since resigning from FMHHS this year. I was still employed in management when the "ball started rolling' re: the issue involving Sue Bline. After speaking with Sue, I can honestly state that HB is accurate in his depiction of the circumstances. I would just like to say she devoted herself to FMHHS and deserved better. She is much more gracious than I would have been in the same situation - she has remained a class act to the end. Good luck Sue! There is life outside of FMHHS, and it is good.
It may make one feel better to contribute to this blog relevant to the business of the hospital but at the end of the day nothing will change as long as the same staff remains in Administration and controls all. I find it interesting that many in the past have been terminated but the "memo" always states "resigned" or "retired" yet they receive compensation for a period of time. Policy states 30 day notice is required for management and defines clearly vacation is not included in this notice. In most cases when someone who has served the hospital in a position such as Mr. Mercuri or Ms. Bline and for the length of time served, there is a reception to honor their retirement and/or resignation. Terminations from the past that we could recall and actually knew their packages as "resignations" were quite generous. A prior VP "resigned" employed less than 5 years received 1 year pay with benefits, several Directors "resigned" and received 6 months pay with benefits. Was this to protect them as individuals or to protect the integrity of the hospital Administraiton? Was it a "no tell" package offered? Sue Bline has been a class act since day one of her employment. She was a model associate and actually took the time to personally be involved in problems and/or concerns regarding her floors. Mr. Mercuri was the most personable of the VP's on hand being down to earth and confident in his position from my perspective. He was always perceptive to my concerns and actually responded unlike some that are left in the present Adminisration. I haven't had much dealings with Administration but the little I have had, I had no response from 2 e-mails to Mr. Hanson, none from 3 e-mails to Mrs. Quillman, and nothing from Mr. Truman. Its very sad to see we have so many in Administration but no time to respond to employees. I as well as others are seeking other employment because we have lost trust in our present Administration.
If you going to clean house, you cant get rid of the CFO without getting rid of the Director of Finance. Who do you think came up with the numbers?
Dan, this is Keith Megraw (ready4change), this is my second posting to N A Health.
I agree that we will face many tough challenges in 2007. That is the nature of healthcare. You are implying that 2006 was one of the worst years at FMHHS.
I believe it was one of the best. You said “there has been good news, amongst the negatives”. There always is. The glass half empty verses the glass half full.
In 2006, FMHHS opened a new ER, staffed with excellent, time tested physicians. FMHHS began a new heart program, with some of the areas best surgeons, supported by our own outstanding cardiologists and primary care physicians.
If you add all of the other physicians, nurses, staff members, informed and intelligent county commissioners and a strong administrative staff, you have a glass, not half full, but possibly, very full. Certainly, not a sinking ship.
I have been working in the local and national healthcare community since 1980. There is a case to be made, that the finances aren’t nearly as bad as you are projecting them to be. FMHHS didn’t make its budget projections, because expenses were higher than anticipated. Higher than expected cost in healthcare is not a new phenomenon, it is a sign of the times.
I agree that FMHHS has had better years than 2006. In fact, the ten years leading up to this expansion had to be strong, to be able to do the expansion. That is a testament, not only to those mentioned above, but an endorsement of the current CEO.
Making the change in the CFO, was possibly, the most difficult decision he has had to make in his 30+ years in hospital administration. He wasn’t trying to “save his own hide”, he wasn’t “sacrificing the lambs”, “shifting the blame”, “diverting attention from his own failures” or “being extremely cautious”.
He is being the CEO. The leader this community hired him to be.
Keith Megraw December 29, 2006
First off, we congratulate Mr. Megraw for commenting. For readers who do not know him, he is the newest Board Member appointed last year.
Your comments are taken into consideration with your position. Many of us do not agree.
Floyd's success leading up to this point was not just the CEO. Nurses and front line workers, Physicians and many others were responsible. Without the doctors bringing patients, this would never have occured and many are now being further alienated because of administration.
The information you receive is so filtered that you cannot possibly understand the day to day operations. We have never seen you spend any time on the floor talking to nurses or staff.
Reading this blog at least gives us some comfort because it does have some very accurate information and comments.
How much you choose to believe is only up to you. But we at least know you are reading which means our voices are being heard at some level.
Changes do need to be made. I personally disagree with your statement the glass is half full. It is less than half full and is leaking quickly. We are losing good staff, physicians are unhappy and the finances are bad. HB has posted information from leading magazine articles of reputable sources and it appears that we are not performing as well.
We lost our JCAHO accreditation and had to get it from what most consider a second-rate organization. I don’t hear the CEO or Board comparing us to Clark, Jewish, Norton or Baptist East on this one.
Please keep reading and we appreciate your comments. HB’s goal is the success of Floyd. The CEO is not Floyd.
Thank you, Mr. Megraw for finally putting some inside persepective and creditability to this whole blog. Your comments are welcome and if continued, will provide some real debate instead of speculation.
Medrep
I absolutely agree and appreciate Mr. Megraw's willingness to listen and post openly. We will not always agree, but both perspectives will be valuable.
This is also very refreshing. I see it has been an active night of posting. This is very good. My interest continues to be the success of Floyd. Readers need to separate Floyd from the CEO. They are not one in the same.
Physicians would like to ask for private meetings quarterly with a minority of board members to discuss issues without the CEO. We know that we cannot meet with a majority or it would violate the open meeting laws.
We have asked before and been rejected. We are the "customer" that brings patients to the hospital and would like the Board to hear us without being discredited by the administration. A Board member should be able to listen to concerns and take this back to administration for answers and suggestions.
It is in the hospital's best interest and the community's best interest to listen to its largest "customer base".
HB,
When and how does the board hear directly from the physicians? Or do they?
As a recent patient of the ER and as an inpatient I cannot complain about the care I received.
What makes me sad is all of the money spent on the expansion. It looks like healthcare will be sacrificed. Long time employees being terminated, unused space, money problems. Why? The improvements are certainly beautiful but does a pretty lobby and massive staircase make for better healthcare? I think not.
iamhoosier,
Until I was appointed to the board, there was never any direct communication mechanism in place.
I pushed for quarterly meetings with the Board but was force to accept quarterly meetings with the CEO and selected Board members.
These have been better than nothing, but do not allow open communication. We would like quarterly meetings off the hospital campus in a casual friendly restaraunt without the CEO.
Why would the board hire a CEO to run the hospital and then try to manage it around him? Just to please you?
HB,
Thanks for the answer.
I generally will agree that a board should not micro manage a business. However, the hospital has some unique situations and problems.
The best solution is to have a physician or two on the board, in my opinion. Perhaps in addition, the board could have the COS and VCOS appear before the whole board, with the board asking questions and the administration instructed to not interrupt. I don't like off site, unannounced meetings.
Losing JCAHO accrediation was a major catastrophe. Why is that lab director still employed??
The (prior) CFO maintained the hospital's profitability for 15 years. That sums it up for him.
He can walk away with his head held high. Many of his employees, probably more than he realizes, support him and are stunned and saddened by his departure.
And to the prior poster who stated
"There is a case to be made, that the finances aren’t nearly as bad as you are projecting them to be."
If that's the case, why get rid of the CFO?
Should we feel sorry for the CEO about his 'difficult decision'?
No, that's what he's paid to do.
The CFO has been been making difficult decisions all along. Often being the "bad guy" and saying no to those less knowledgeable in the finance arena, including administrators and physicians, who wanted to spend, spend, spend.
He was doing his job as the CFO that HE was hired to be.
The CEO knows more than anyone on this blog about the big picture from an administrative standpoint.
If that's what he felt had to be done, and he can live with it, it's water under the bridge now.
We bloggers probably don't realize it has been a hard week for him also.
BUT the most baffling question this week has been:
Why on earth is there not an interim experienced (consultant) CFO now in place to bridge the short-term gap?
Executive searches for CFO replacements take time, but
DIRECTOR OF FINANCE inexperienced at the CFO level? Who, tales be told, has been hand held by the CFO for the past several years? And not watching her own AR house that she was directly responsible for?
Unbelievable.
As sincere as Mr. McGrew seems to be, unfortunately he must be new to this political game. He will realize this once Braynt Hanson sticks his ever trusty knife into his back as well. Bryant Hanson did only one thing on Wednesday, he sacrificed when he should have taken one for the team. I personally hope that Mr. Mercuri knows how much he was cared about, and how respected he was. We know the truth Mr. Mercuri, know you didn't get a fair deal and that we will always miss you.
How sad I am for the state of this hospital? As a long term employee, I am devastated by the current state of affairs. It is sad when your workplace publishes information about potential job cutbacks before informing its staff. It is even more devastating to lose staff with so much time vested because they are viewed as a threat. If its a scare tactic, even more childish. Eventually, the public will learn of the evil deceitful FMHHS ways.
According to the JCAHO web site, Floyd Memorial is the only hospital in the state of Indiana to not be accredited. With that in mind, why would anyone ever step foot in that hospital when any other hospital would be a better choice, according to JCAHO?
This reflects poorly not only on the CEO, but every employee of the organization. Getting rid of the person in charge of finances will not improve patient care. Your glimmer of hope is nothing but a mirage.
Come on! Really, postings like this: "Eventually, the public will learn of the evil deceitful FMHHS ways." are overdramatizing the situation. The hospital is doing just fine and if anyone thinks it is not a good place to work, I would invite them to spend some time talking with employees of other hospitals in the area. Sitting and wallowing in negatives helps nothing.
Our lab director is still employed because VP Truman hasn't taken the time or does not know how to hold the director's feet to the fire.
I work in finance and our director told us that she was the new interem CFO. Someone asked if there would be any more layoff and she told us 'ANYONE CAN GO AT ANYTIME. THIS MEETING IS OVER.'
This is a fact, exactly how she told us, and I was there.
What a good leader she'll be. Maybe leading by fear is the plan.
Thanks Mr. Hanson.
Dear Anonymous 01:39:
Just curious...what is the name of your new director/interim CFO? Just use initials if you prefer..I think I have an idea of who this person is, I just wanted to confirm it...I wish you well, hang in there!
Not the original poster regarding interim CFO but answering question from 8:04 P.M. Her name is Elaine Hayes and she is highly qualified with being a CPA as previous CFO. Worrisome though is she is notorious for lack of feedback which is just what we need - another VP that does not respond. She is however a perfectionist, is computer literate, and may bring to light the fact we are overstaffed in information systems department compared to other facilities. The CFO relies/relied on the word of the IS Director relative to the multiple systems we have and with no one else in Administration being literate, of course everything is approved. This could lead to several dollars saved to downsize that area. If you look at the credentials of all administration, you will find most are oblivious to the number of systems we have and how they interact. Elaine Hayes has the image to bring to the community and the hospital with a touch of class. She is a nice person and if she is given the opportunity to trial the position as CFO, and keeps in mind she can't be everywhere all the time and control all, she may be an asset. Our present Administration is not in tune with the "online world" and you would think Truman would be since he is the youngest but he is as lame as the rest of the group. No one is impressed with him and some do not understand how he was chosen for the position he helds despite the fact the hospital paid a company to hire a VP of operations and he was the end result. All that money spent for that? What a waste. New blood may change things and time will tell.
Dr. Dan, You are to be commended for having this open forum. I think the majority employed by FMHHS would be thrilled to have you serving as a board member but we know the chances are low with the present administration. Its a shame the hospital blocks your site but allows others to surf the net to find how to cheat on a playstation game. We are at their mercy you know?
I saw Keith Megraw ready4change posted on your blog and find it admirable that he acknowledged his name and position. Anyone that has been employed at FMH for a long period of time knows he is the husband of the previous executive assistant who was the niece to the THEN VP Luther Wyrick to the president that Katie Wells hold now. Megraw played Santa and was actively involved as he was an associate of Selfridge and Associates and then branched out to his own insurance business. Now he is on the board - wonder why?
Quite obviously, who ever so boldly posted that there should be cuts in IS, doesn't work there themselves, how convenient. They are imperative to FMHHS and are not overstaffed. They are an impressive group of people. I do find it odd that down in Elaine Hayes area, that she has a supervisor, who supervises one person, and another supervisor who supervises two people. I'm sorry, what exactly is your definition of overstaffed?
I hope that many of you will see that the most recent postings illustrate common characteristics of all large organizations: That a lot of griping goes on naturally and that one's perspective (or where he/she works) colors how a situation is interpreted. Most everyone thinks that his/her own work team should be a relative priority. Most everyone also does a better job of seeing the flaws in others and in other work teams than in themselves. It is not unusual in such cases for an employee to blame management for not seeing what is so clear to the employee--even if it is not so obvious to members of other groups.
Unfortunately, Dr. Dan who's strengths don't extend to working well with others and understanding organizational dynamics, has extrapolated that routine griping into some serious flaw in the the way the hospital is run. Since he personally dislikes the CEO, what he hears through his own filters just reinforces what he wants to believe.
I would hope that cooler heads would recognize that there will always be periodic inequities and things that are hard to understand in a large complex organization. That doesn't mean the organization isn't a great one and that it doesn't produce a great product. I truly believe that Floyd is a great organization with great people producing a great healthcare product. Let's not let one blog owner with a personal agenda blow things out of proportion and create problems that don't exist.
YES IT IS VERY MUCH TRUE THAT FLOYD MEMORIALS I.T DEPARTMENT IS ONE OF THE BIGGEST HOSPITAL BASED I.T DEPARTMENTS IN THE STATE OF INDIANA. DONE FORGET THEY PAID MILLIONS OF DOLLARS TO ALSO BUILDING TO HOUSE THE CURRENT I.T DIRECTORS EGO AND EXANDED STAFF.
JUST TOO BAD THEY CANT FIGURE OUT A WAY TO PAY FOR THEMSELVES. I.T IS SUPPOSE TO BE SUPPORT FOR HOSPITAL NOT A HINDERANCE.
Anonymous 1:16, Should you really be spending so much time posting to blogs rather than studying for your GED? Might want to do some extra work on spelling, grammar and sentence structure.
Here is the plan. Next Tuesday, High Noon, in the middle of New Albany. Battle Royal
FMHHS Information Systems Dept
VS
FMHHS Finance Department
Loser Cuts (4) FTE's for 1 year.
Elaine Hayes has 1 manager AND 6 supervisors. One supervisor supervises one person, One supervises two, and a third supervises just a couple more than that. Some nursing areas (CVCU/ICU and PCU) have 1 supervisor for approximately 40+ FTEs. The last I knew finance employees were not taking care of the patients. Have there been any cuts in finance? Talk about a department that needs right-sizing. Start with the (interim) CFO.
The prior CFO kept things well padded in the basement, (including physician billing which has been an expensive money-losing area for years). Hopefully the new, permanent CFO will review operations down there, dismantle the "working under fear" and short leash environment, and give credit to the hard working but seldom-recognized associates in finance.
The choice of the new CFO is critical to the success of the organization. Promoting from within will not work for the CFO position.
Know this: it was not the best choice but turned out OK for the VP of Operations as he is overseen and mentored by the outstanding leader Jerri Quillman. The same scenario will not work now.
The hospital needs new financial executive leadership, a clean house, and a fresh blood in the finance department. Recruit someone with outside experience with whom the insiders have no set opinions of. It will surely be a step in the right direction, AND will win back the confidence of many associates, including those in management council.
Hopefully Bryant, the board, and the management team will choose a seasoned, experienced executive CFO who is a CHANGE AGENT. This will secure the future of Floyd Memorial Hospital.
Just a question, has the interm CFO attended the fish and care programs?
If you want to compare FTE counts for Floyds Finance/Patient departments against other hospitals in the Louisville area and the state of Indiana, you will find that in fact the current FTE counts for this area is FAR below that of other hosptials with similiar revenue and patient volumes.
Now I completely understand the issue of FTE cost and reduction to curb expenses, but you have to understand that if you dont keep this department staffed in an appropriate manner, your cash flow and A/R results will suffer.
The Finance/Patient Accounts department have worked wonders with the resources they have been allowed to have.
I would encourage anyone that really wants to know the facts, to start comparing the FTE benchmarks for various hospital departments. I think you will be suprised to the outcome.
The fact is when you compare some critical key A/R benchmarks such as % of Outstanding Medicare Billings over 90 days (50% of hospital volume)and % of Commerical/HMO billings over 90 days, you would be suprised to see that Floyd is much lower than some local hospitals that have double of the staff.
If you want to cut staff, start looking at areas that are overstaffed as compared to the benchmarks.
1. Information Technology (ALL)
2. Medical Care Mangagement
A. Medical Transcription
B. Case Management
Both of these departments have been overstaffed and unable to achieve results. As as result both have given the hosptial very little return in investment.
If you want to limit the resources of a critical department such as Finance/Patient accounts so be it. I completely understand that they are not a direct patient care area. But remember who is responsible for keeping the lights on and making payroll, its the Finance/Patient Accounts.
One last comment about the integrity and professionalism of Elaine Hayes/Intermim CFO. Elaine is a top notch, polished and highly skilled professional. She did not ask for this change but she is stepping up to the challenge. Dont put blame until you see how she is able to operate.
Also for those current employees that are using this blog as an opportunity to drag her down. Grow up and do your job. If you are not happy, you can always leave!
"your cash flow and AR results will suffer." The cash flow and AR results DID suffer. The aforementioned highly skilled professional did NOT manage AR, resulting in input from outside expertise that was needed to correct the mistake. This incompetence painted a picture of an inaccurate net income and operating margin. A couple million dollars had to be written off over several months. The true margin was realized and the organization had to cut back. This gaffe was the sole responsibility of the finance director.
Obviously another misinformed blogger. Cash flow and A/R did not contribute as much to this problem as did gross overspending and PRN (part time)employees being allowed to work (40) hours a week instead of in some cases (8) hours.
The Finance Director has little control over what other Department Heads approve for spending and approved hours. I can promise you it has been brought up over and over.
Compare the benchmarks and it will show that the key indicators show that the results are consistant if not better than similiar hospitals.
I am certain that if the hospital had to write off over a million dollars a month the Finance Director was not the single source of approval.
Those decisions dont get made just by the Director of Fianance. They also get reviewed and approved by the CFO, the CEO and the Board of Directors.
Dont kid yourself if you think that the Finance/Patient Accounts department was not being micromanaged at a very high level.
JAN 1, 2007 Total bed deversion again today.
Jan 2nd total bed diversion again...holding in er again...staff working their tails off and they want to lay off staff (like one housekeeper to the unit)...apparently they dont want the rooms cleaned..I'm sorry we are already pushed to the limits...now they want us to do housekeeping too????? Hey Hanson,
come up and clean the rooms and toilets...
I don't think he will show up!!!!
TWO WORDS:
Jack McCloskey
anonymous 8:22 - your two words were not meaningful to most.
From across the bridge a suggestion I took part in first hand in our hospital. For one day, a 24 hour period, several members of management team decided to walk in the shoes of others and worked alongside our staff members. It was refreshing to see our upper management clean toilets, pick up trash, transport patients, respond to pages for bed making, serve patients their trays, serve in the cafeteria, wash dishes, empty trays, and all those duties that some feel are beyond them. It was an uplifting day for most with only a couple wearing humiliating smiles apparent to all but for the most part, a learning experience. After reading this blog, I think some would benefit if attempted.
I have observed the same treatment of long term employee's at another local hospital. An accummulation of years of employment equals top out salary and benefits. The individuals performance based upon my experiences had nothing to do with "termination" (defined actually as deciding to step down, taking early retirement, seeking other opportunities, wanting to spend more time with the family, etc. It is all about the money. The instituiton can hire someome less experience for less money. I watched and continue to see it happen. I do mean less expierenced too. How about 5 years of non clinical nursing experience to director.(that on did not last long). I do not work at FMH but I know the involved nurse. She has an excellent reputation and staff that I know have spoken highly of her. Was it just a coincidence that her departure occurred when FMH acknowledged their monetary crisis????? I rarely see, in fact I cannot remember the last time I saw management at amy medical facility make a decision that did not have the "green bucks" as the basis of their decisions. I am not attempting to criticize this CEO because I do not know him. I am just stating reduction of long term employees has become a method of administrations across this country to save money. The days of dedicating a career to a facility and expecting any sign of appreciaiton seem to be something of the past. How sad!!!
anonymous said "Cash flow and A/R did not contribute as much to this problem as did gross overspending and PRN (part time)employees being allowed to work (40) hours a week instead of in some cases (8) hours."
SO-Cash flow and A/R did contribute to the problem, albiet partially.
Also - Isn't it the job of a finance department to be the "check & balance" of any organization? So that "gross overspending" doesn't occcur?
S0- if Cash Flow & AR was 50% of the problem and unchecked spending was the other 50%, what was the finance department doing??? Certainly not their job
Anonymous said...
"Here is the plan. Next Tuesday, High Noon, in the middle of New Albany. Battle Royal
FMHHS Information Systems Dept
VS
FMHHS Finance Department
Loser Cuts (4) FTE's for 1 year. "
---cannibalism never worked for Enron
anonymous said -"The Finance Director has little control over what other Department Heads approve for spending and approved hours. I can promise you it has been brought up over and over."
-But isn't one of the primary functions of a finance dept to be to exercise "fiscal controls"?
It sounds like the Hosptials finance department had/has many obstacles?
If so, who has erected them?
In my experience at Ford, "terminating" 40 yr employees is called a "Buy out package"
Money Money Money;
As the kids say today;
"It's all about the Benjamins"
In response to “From across the bridge a suggestion”
I love this idea!
I believe all companies can gain by management working in the trenches once and a while.
We, at Papa Johns,are required to work 1 week at a Pizza store, doing every job from making the pizza, to closing/cleaning and balancing the books, regardless of our position at corporate.
This has allow us to understand the needs of our "customers" as no other company
"TWO WORDS:
Jack McCloskey "
Is he the CEO who causing all the problems?
Somebody mentioned "benchmarks";
Where did these benchmarks come from?
What was our results of other areas? Like Home Health, Outpatient Surgery, Medical Care Management? compared to other facilites?
From the comments of a current board member, It sounds like their behind the CEO
If the hospital has been having money problems and the board is "behind the current CEO", then when did the board find out about the problems?
Working at Humana, I don't understand why you would want to cut IT. IT can be vital to any companies success. It has for me, 4 yrs ago my Humana stock was $12/share, its now $52/share.
I believe that this has occured because the new CEO of Humana was an IT lover and has revamped/updated and rolled out every new system. Most importantly, he forced us, the employees, to be responsible for our own systems. We want, We have to use and show how much it saved/produced money> This was hard for some of the "old folks", but it has really changed things around and my 401K has loved it?
"The days of dedicating a career to a facility and expecting any sign of appreciaiton seem to be something of the past. How sad!!!"
Remember, you don't work for you, you work for them and your next mortgage payment :(
Is anyone aware that FMHHS has sold off their occupational health department? They are under new owners as of January 2, 2007. The hospital employees that were working there were not allowed to transfer back to the hospital unless they applied for an open position like everyone else, and were not guaranteed a position with the hospital. These are long term employees some with as much as 16+ years. How secure are any of our jobs?
The sell of the Occ Health department would be of no suprise to anyone that knew the facts.
Remember that the Occ Health department was the brainchild of the current V.P of Marketing and it struggled from day one under his control.
I dont think it is a bad thing that the current employees were not allowed to come back to Floyd without applying for jobs. Most of the staff were rejects from other areas of the hospital anyway.
Maybe the trend of closing down other departments that dont make money will be a positive trend.
Joslin,Home Health and Physician Billing should be the next ones on the chopping block. They all lose money and have high paying leadership.
The hospital has for years used the practice of getting rid of employees with years of experiences. I should know. I had 27 years in. Mr Hanson is the worse thing that for FMH. I went thru Mr. Fender and Mr. White. Bring back Mr. White. He will put the hospital back on the right track. I worked with both people that were asked to leave and Sue was a great leader and teacher. Mr. Hanson is a liar all the way around first hand.
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