Not-for-profit
Many people ask why Floyd is a not-for-profit hospital and what the advantages are. This is a very good question and I can only give a few thoughts. There is a recent government publication that addresses this issue in detail and was published in December of 2006. http://www.cbo.gov/ftpdocs/76xx/doc7695/12-06-Nonprofit.pdf
Many not-for-profit hospitals belong to a group or network of hospitals like the St’s Mary’s system, the Baptist system, or the Sutter system in California. Being part of a larger not-for-profit network can help by supporting each other in times of need, working together to improve clinical services and taking advantage of economies of scale. This collaborative effort may help ensure that our local hospitals remain open and available to the communities they serve.
In some small communities or isolated areas, these hospitals may be the only providers of 24-hour emergency and hospital services. They may not survive without the government subsidy provided by being not-for-profit.
As part of a larger network, it sometimes gives these smaller hospitals access to much-needed capital and interest rates well below those of many independent facilities.
Historically, not-for-profit institutions had to have open Medical Staffs and had to treat everyone that came through the door. This difference is now a mute point as our legal system has eliminated these differentiating factors.
Few of these reasons really apply to Floyd, so you have to then ask what are the perks associated with being not-for-profit.
The above graph really shows why hospitals want the not-for-profit status. It is very financially beneficial.
In addition, according to the above report, there is very little difference in Uncompensated Care provided by not-for-profit and for-profit institutions.
The question that comes to mind is why with all the subsidies and tax advantages are some not-for-profit institutions in communities like ours not more profitable. Could it be the management styles between the types of organizations?
Many not-for-profit hospitals belong to a group or network of hospitals like the St’s Mary’s system, the Baptist system, or the Sutter system in California. Being part of a larger not-for-profit network can help by supporting each other in times of need, working together to improve clinical services and taking advantage of economies of scale. This collaborative effort may help ensure that our local hospitals remain open and available to the communities they serve.
In some small communities or isolated areas, these hospitals may be the only providers of 24-hour emergency and hospital services. They may not survive without the government subsidy provided by being not-for-profit.
As part of a larger network, it sometimes gives these smaller hospitals access to much-needed capital and interest rates well below those of many independent facilities.
Historically, not-for-profit institutions had to have open Medical Staffs and had to treat everyone that came through the door. This difference is now a mute point as our legal system has eliminated these differentiating factors.
Few of these reasons really apply to Floyd, so you have to then ask what are the perks associated with being not-for-profit.
The above graph really shows why hospitals want the not-for-profit status. It is very financially beneficial.
In addition, according to the above report, there is very little difference in Uncompensated Care provided by not-for-profit and for-profit institutions.
The question that comes to mind is why with all the subsidies and tax advantages are some not-for-profit institutions in communities like ours not more profitable. Could it be the management styles between the types of organizations?
Labels: Floyd, not for profit
posted by Anonymous at 5:55 AM
13 Comments:
Dan,I hope you and the other doc's don't loose your free service in the doctor's lounge.Every morning all of admin is over there eating.They are there at lunch and late in the afternoon! It shows when you look at them.Dietary staff has to pay for their meals.Why is it that the highest paid employees go there to eat?
OH,It's to have the bonding that you all do on a daily basis?Never mind I'm sure this area has been covered as well.Let's make the min.wage employees pay,and show that the dr's and adminstration are bonding.PLease!
Enough complaining about the doctors and their free donuts. Talk about a NON-ISSUE...sheesh. Wah!
The REAL question is how the Board meeting went the other night, and whether anyone really wanted to deal with the difficult issues...the $11.5 million WHITE ELEPHANT in the room, and figuring out not just how to handle this "Enron-like" accounting issue, but rather, determining how the ever-so [in}competent administration let it happen.
Any news to share?
I would be curious about hearing some feedback from the board meeting, to the extent that any public comment can be shared...
Just for the record, don't the docs pay for the food out of their hospital staff dues?
Yes the doctors do pay for food out of their annual dues.
The board meeting was interesting but it did not address the "white elephant" to any significant degree.
The Board did meet privately without the CEO or anyone else prior to the executive session and prior to the regular session.
Nothing has been said about what was discussed in that meeting and it is possible they talked more openly there.
The comment was in reference to the doctor'eating inthe lounge.The comment was made towards adminstration eating FREE! The comment was made by Geri Quillman. They in admin is over there bonding with the doctor's while she eats!I was trying to say was that why does the most expensive staff get free meals?Dietary makes the 2nd least amount in the building has to hear her(GERI)complain if her eggs are not hot.Excuse me Dan,but you all have more then donuts!They don't even like the doctor's,but are to tight to go to the cafeteria to eat.The corner is for after she eats and can go slam with the nurse diretor's how stupid you are .How many fence setters does it take to destroy an organization? And you better believe there's more then two.You support Sue Bline ,ask her about the old ladie's and the director of ES on their morning sessions?I'm hoping as smart as our perception is of you,you are already aware!Good Luck and success on addressing where the problems actually is.
Anon 11:23 Could you translate that into English?
no kidding, my bet is that the statement is from one of those uneducated cafeteria workers just complaining because they are not smart enough to even make beds or do the laundry.
hey 5:52 pm, You should really tell how you feel. You are probably not to smart making that kind of statement.
Yeah, your right, probably not too smart, I should probably resign my role in administration.
to 3:36 pm, If you work in administration making that kind of comment you should be fired, or you to chicken to say who you are.
If one works in administration or human resources, they have the advantage of enjoying the 3% increase since January. According to the unsigned document received by many associates it outlines the changes, and includes and administrastive members would see the change in their next paystub. Many of us question this...Will they also be charged with the pay they did receive since January? We were told we would receive 3% and just 3 days before it goes into effect we receive this unsigned summary of changes. There may have been a face sheet/cover letter from the author, but we did not have that opportunity to see it. The 1% is nothing relative to the pay received by those in Administration but for the staff in low pay grades, its a significant impact. With the accounting error, it would make better sense for those responsible to take the cut rather than those who actually do the work and divided equally between the VP's, Senior VP, and president. We have no control how funds are entered in the books and we should not be penalized for the higher ups errors. After all, we are the ones that do the work so we do reserve the 3%. Venting on behalf of 14 employed by the hospital. Low moral all around even though Administrative staff was "MBWA* since the announce of the change of budge.
keep in mind, just because you were hired to be on the frontline, actually doing the work, does not mean it is actually being done at the productive level you were being hired for. You are correct, many front line associates had nothing to do with financial entries, however you do a major impact on the bottom line with your productivity. I am sure FMHHS has associates that are only working 110% during a given day, but I assure you they also have ones that are working at 50% capacity. Its those employees that make it difficult to stay within a budget. Granted this is not the cause of the current situation, but dont fool yourself by saying that you dont have some responsibility in the budget process, because in reality you do. I think this is why Floyd should give year inceases based on merit and not across the board. This way the ones that are truly working hard get rewarded.
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