Clear as Mud- the CEO definition of transparency
Our “illustrious” CEO who continually touts the transparency of the organization has done it again. He along with the acting CFO decided on a policy change and he announced to the management council that it had been decided to decrease the discount for prompt pay from 20 percent to 10 percent.
Different people have heard differing comments about whether employees would continue to receive the 20% discount for paying their entire bills while the rest of the public would only get a 10% discount.
This is being done without Board knowledge when it is clearly a fiscal issue related to the hospital’s finances. Why the Board has not been informed of this will need an explanation, but I’d be willing to bet this wasn’t an unintentional oversight but a way he will be able to disavow it when he realizes it is another poor decision as well as a public relations nightmare.
Trying to nickel and dime those patients who have a tough time affording healthcare anyway is an example of “short”-sighted thinking.
This will not solve the financial dilemma at Floyd that occured under his leadership. It will create an ever larger chasm those patients feel has developed over the past two years.
Not showing financials at the last Board meeting and now doing this without Board involvement shows just how transparent the organization is under his leadership.
Maybe transparency at the administrative level has a different meaning than everywhere else!
Labels: CEO, financial, Transparency
posted by Anonymous at 5:52 AM
48 Comments:
Some found out by receiving a bill with just the 10% discount. It was not announced to regular employees or made widely known. It smacks of sneaky behavior.
But that is the acting CFO's m.o.
Let me begin by saying I do not like many of the "things" the CEO has done and I do not like him personally as a person. That being said...
I do defend his "right" to manage the organization. There is a fine line between the Board's role and function and that of Management. It is not the Board's role to manage. The Board hires managers to do that.
The board is responsible for establishing the hospital's mission and policies. Management is responsible to establish procedural steps to impliment those policies.
In simpler terms, allow me to use an analogy. Let us say The First Lady and President are having a State Dinner. The First Lady (Board) decides upon a menu for the dinner. The chef (Management)then prepares the meal using the recipes he finds works best for him. If the chef cannot meet the standards established by the First Lady, then he/she is replaced. But the First Lady NEVER, NEVER cooks the meal.
The board should NEVER. I repeat, NEVER, manage the organization. There are countless articles that explain the role of a Board member. And you can find them if you research them in the American Hospital Association's Journal on Board Governance.
I agree that some very poor decisions have been made at Floyd. But let's not confuse the role of the board and the role of management.
If the "chef" cannot produce a quality product, then replace him. But let's not resort to micromanagment. Things would only get worse.
I agree with much of what you say, Dr. Dan, but this time you are wrong. Your intent is well meant, but your judgement and solution is way off base. TAke care that you not become a part of the problem. You have a responsibility to maintain clear thinking as you lead Floyd.
How about an even more fundamental question - why did employees get a 20% discount anyway? This is a county run hospital - the discounts should be the same across the board for, at least, all Floyd County residents. I am sure that Floyd County residents were not advised of this special exception for employees.
Using your chef example, let’s say that over the past 6 years your chef has burnt the food, wasted the money, pissed off the customers, and continually caused turmoil in the kitchen.
Surely the First Lady isn’t going to continue to allow him free reign without a lot more oversight.
That would be even more irresponsible
Neither Dr. Dan or Anonymous 9:37 have a clue about the proper relationship between a board and the CEO. You either support the CEO or you get rid of him. If you are micro-managing him, you are either avoiding the job of firing him or you are taking him off the hook for anything that goes wrong from that point forward.
By the way, even the most casual observer of the hospital can see that it is an extremely well run operation. The financial situation will sort itself out in due course despite Dr. Dan's ridiculous assertion that this could all have been avoided if only his suggestions had been followed. Since the Chairman has stated that the financial problems were largely a result of a bad assumption about contractual payments, it is hard to see how anything that Dr. Dan has put forth would have had any impact whatsoever on that.
which one of this administrations stool pigeons are you?
You obviously have an extreme and uninformed bias about this CEO.
$11.5 million dollars in error is much more than just bad assumptions over several years.
You base your comments on limited information or lack of understanding of the big picture or possibly both.
Look back at the early postings and you will get a clear picture that the trend was very obvious and more should have been done.
Firing the CEO is what should be done, but because he fired the CFO first, it delayed the ability of the Board to fire him. Firing both CEO and CFO at the same time would not look good for the Bond rating review coming up in June.
to Concerned employee 9:37 am
You are right. If the "Chef" has performed substandardly, than the chef should have been replaced long before this time.
This still does not justify the Board trying to be the manager. If the CEO is not performing, then they should replace him. But they should not try to manage. This is not the function of the Board. Their function is to replace him.
Which brings up the other issue. Why hasn't the Board replaced him long before now? Has the Board been negligent? Does the Board itself need to be replaced?
The Board has been functioning at a disadvantage because the CEO has only given the Board selective information. They have been kept in the dark. Pretty clear isn't it? The Board has been deceived. WHen an employee deceives the employer, he she usually is terminated. WHy is the Board not terminating the CEO? I suggest they are simply buying time until the new CFO is seated and functioning. THe Board cannot run the organization and needs the strength of a good strong CFO before they weaken the organization by firing the CEO.
The other problem is involves the CEO's contract. It is a 4 year contract, renewed each year at time of performance evaluation, and calls for the hospital to pay the CEO the remainder of his contract if they terminate for no good cause. "Good cause" needs to be well documented to justify the termination. I suggest the Board is in the process of collecting that data. In the mean time, they are also trying to get the new CFO seated.
response to anonymous 9:08 am:
I do not see anything wrong with the employees receiving benefits that other citizens don't have available to them. It sounds like it is just part of their employment package. After all, this is a company trying to recruit employees just the same as any other large company. All companies offer benefits to their employees.
Seems to me we are getting a little bit knit picking.
The 20% discount is available to all citizens. Actually is available to anyone who has an unpaid bill. It was instituted to motivate quick payment.
A wise old person once said to me.
"It is my job to see that you do your job.
If you aren't doing your job, then I am not doing my job.
......and I am going to do my job."
This is a simple, uncomplicated statement. In its simplicity, it gives good guidance to all responsible for the performance of others.
Are you listening?
Yep.
RE: "The Board has been deceived." Other than Dr. Know-it-all's pronouncements on the subject, please produce your proof that the CEO has purposely deceived the board. The fact that this board and previous boards haven't agreed with Dr. Dan doesn't mean that deception occurred. Dr. E. may think that any disagreement with him has to be a result of misinformation, but that isn't the case. Sometimes a disagreement is just a disagreement.
Or sometimes it's a sign of a guilty conscience. If you tell/hear a lie for long enough, you might start to believe it's true, and it's easy to argue for something you believe...even if it's wrong. Justification does not always equal absolution.
from what I know of HB, he never has a problem with disagreement and he spent 4 years on the board not getting his way while the CEO continued to allow the hospital to decline into this financial mess.
He does have a problem with lies, maniputlation, and deceit
You CEO cronies just cannot admit that the CEO is a lying, conniving, little napolean who cannot stand any threat to his autonomous control.
Napoleon? As in Short Man Syndrome? Is that a formal diagnosis, or are we mud-slinging again...
We've seen HB engaging in a little of his own manipulation. Let's not go putting anyone on a pedestal.
Who's taller - HB or Bryant? Hey wait a minute, when was the last time you've seen them together?
As an employee, I liked my 20% discount if I paid my bill within the time frame. I took advantage of it whenever I had my baby there. I saved myself some money and the hospital got my business!!!
Management is coming up with all kinds of stupid ideas to wipe out this huge deficit. Bo Allow me to illustrate some of the better ones:
*Bottled water instead of water pitchers is supposed to save $100,000 per year. We are also not to give everyone water but offer it, because, after all, not everyone drinks water.
*Smaller meals for senior citizens.
*Cutting pie into nine pieces instead of seven.
*Charging $0.15 for styrofoam containers in the cafeteria when food is ordered "to go."
*No more free tea or coffee for employees unless you bring your own cup.
*Warning employees about taking personal care items like toothpaste and peri-wash (cleanser for the bottom).
*Complete linen changes (unless soiled)cut to once weekly.
All of this and more is being proposed while the new addition looks like a resort, and more construction is being done on the upper floors of the new wing. To top it all off, staffing cuts continue while management remains top-heavy. With all of these super ideas, we should be operating in the black in about 900 years.
In my previous post, please disregard the "Bo." I am not sure what was going on there.
The 20% discount prompted more timely payment. I can promise you that by reducing it to 10% the bad debt percent will increase. The question is, do they now have reserves in place to cover that increase? This was a very bad decision.
Liens are changed every other day unless diry. Not weekly!!
Excuse me before someone jumps on me for spelling linen wrong...Ha ha
Why in the hell should anyone be compensated for paying their bills in a timely manner.
Is that not what people are supposed to do. I bet you don't give a discount if people pay there bill on time. What would make an employee any better than anybody else. Most people work nowdays. After all this is still a County Hospital. I am glad I now know this because if that practice is still going on, I would have deducted the 20% instead of 10% when I promptly paid my bill. If I were running the billing office I would add 10% every month I did not receive a payment. Theres a big difference between trying to make an effort to pay and just not paying. GET REAL!
I can only hope that when the board starts the spring cleaning they look at all of the cob webs!In Bryants defense,he had to trust his VP"s and his management staff.With that being said he alone didn't create all the mess.When you trust your employee's (VP'and directors)and they continue to give you untruth's then you have to decide,who stays and who goes.Being in a director's postion and you are able to manuiplate numbers you turn in to look good,and your not questioned because hey,your giving he CEO what he wants and you look good all the while your playing games.There is alot of people that should be held accountable besides the CEO!I know for a fact employees will tell him what looks and sounds good.They will eat him up to his face and talk about him like a dog when he is out of ear shot.He has a VP that really wants his postion and will tell him,the nurses,docs,the board what ever they want to hear.All I'm saying if this board is serious?Don't just peel the apple ,get to the core.The most scary thing at Floyd (in my opinion)is the adminstration staff that approves these things most will or should be gone in 2 years.Do you or anyone else think that the upper management cares if Floyd is around in 5-10 years?Please Dr.Miles turn over all the rocks!I am not an employee that wants to throw in the towel,I want what is best for our patients as well as a what our community expects. .But look in the cracks and search the truth.Floyd will be here when we're all dead and gone.But what kind of leagacy will be left? There is truly associates that are here because we care about our hospital and community.Look at the young VP who doesn't have a hidden agenda.If you can get Geri Quillman from hovering over him he'll make it on his intergrity alone.He(from all the rest)is not corrupted yet.I will gladly discuss with any of the board if they are willing and it is confidental with documentaion and facts.He is the only one that is a straight shooter that is up there.Not a fence setter!The new CFO will do a fine job,if he's allowed to do so.Remember he only will have what his direct reports will share with him.I hope he begins his journey trusting NO ONE! Everyone that will be dealing with him will most likely will have a hidden agenda.If in fact you get rid of Bryant,go for a clean sweep,You have Bob M(Dan's mentor and is jocking for CEO)can't keep his marriage together and is trying for a windfall,Geri Quilman who tells the CEO one thing and nurse director;s another,and Mark Truman who has yet to be a lying because this young man cares about where the future will be in 2008Mike Ford is for addressing who can gain him more power and do nothing with it.I pray for the board nightly.I also pray for Dr. Dan to address the real issues and not continue to be so negative about just Mr.Hanson.He's had help,he doesn'tknow that people that are lying,Imean out right lying are doing it to both of you.The more you mix it,the worse it stinks.They will turn on you to Dr. Dan(already have)
I can't imagine that the board won't want to follow the suggestions of Anonymous 12:54. Just because he or she can't write, spell, know the correct names accused of wrong-doing and believes that the board chairman is a doctor is no reason to think that Anon12:54 doesn't have superior knowledge about how to run the hospital.
And, intimate knowledge of administration, yet is unaware of the correct spelling of the leader's names.
The 20% discount has been offered to everyone on your bill. It gave you the choice if paid in full. You could put it on Visa or Master Card ever to get the discount. I would always pay in Cash to get the 20%. But, it won't to worth it to take it out of savings for 10% on the large amount of money. So, I see the hospital loosing on this deal. I will make small weekly payments.
Coincidently, the 20% figure matches the discount frequently discounted to insurance companies when rates are negotiated with the hospital.
I suspect that the 20% discount offered to individuals was originally conceived as a result of so many private paying individuals who do not have the advantage of an insurance company negotiating a reduced rate for them.
Get off of this issue. It is just good management if it encourages someone to pay the bill.
Granted not everyone takes advantage of the 20% discount, but when someone does it is a win/win.
The individual gets their bill reduced and the hospital gets their A/R reduced.
Think for a moment what this means for the hospital. When a debt is eliminated, it doesn't need to be sent to a collection agency who takes more than the 20% discount. It's elimination allows for a better cash flow. And the hidden expenses involved, i.e. higher staff to handle the volume in the accounting department is minimized.
Get off of this issue. It is a good practice where everyone wins. And it is available to eveyone who has used the hospital...not just the employees. I am not an employee and I received the opportunity for the 20% discount and took advantage of it as did my daughter when she got a bill for services rendered.
By the way, I agree with anonymous 12:54. I am sure there are those individuals who "feed" Dr. Dan lies because they know he will listen. They are taking advantage of a situation. Dr. Dan must be very careful.
And to those of you who have criticized and mocked anonymous 12:54, shame on you. All of your remarks are clearly obvious and can be summed up in one word. INTIMIDATION. You are what is known as the playground bully. I notice you did not discredit the message of the comment, but just the grammer and spelling. So he/she did not have the names spelled correctly. And what difference does it make whether, the title for an individual is misplaced. If you really want to know what is going one, I suggest you check it out first before you ignore and discredit the message. Obviously Anonymous is justified in wanting to remain anonymous because of the way "Bullys" can intimidate. I suggest the "Bullys" have a hidden agenda....hmmm...and just wonder what that is????
Give the messenger a chance before you shoot him!
I am glad that anon 7:52 from today, is not in charge of finances for the hospital or the ethics committee for that matter.
Where are you getting 10% on savings accounts? Also, if you have the money, you have an ethical responsibility to pay it in a timely manner instead of dragging it out, no matter the discount. Were you never taught right from wrong?
Actually, I don't think I understand what that person was saying at all. I had the impression that he/she would prefer to pay with a credit card to get the discount, and then pay minimum payments on the card until it's paid off...? Which is also not a bright idea if he/she understands how credit works.
I am 7:52 from this morning, I was only telling people you have the option of paying by credit cards. I pay off my credit card each month never carry a balance and guanantee my credit rating is better than yours. The hospital and physicans don't charge you interest and can't turn you over to a credit union if you our making regular monthly payments on time and a reasonable amount. I have worked for several including the hospital.
I don't think you're qualified to make that kind of guarantee.
I wonder if the new Prexus (sp?) surgery center will give a discount to patients who will choose them over Floyd Memorial?
To anonyous 6:23 posting.How do you know that the posting at 12:54 is not a board member?YOU Don't!!!! So think for a minute what you decide to blog.WE are not as educated as some folks at Floyd,but we are educated enough to know when to keep our mouth shut.Maybe you should retract your nasty little comments?Our thanks to you anonyous 8:45 a.m.
Anon 5:29(7:52),
You are making guarantees you can't know about. Another reason that your comments do not make a lot of sense.
Also, I note that you did not respond to the ethical part of my question. Just because you are not being charged interest, does not ethically make it right for you not to pay your total bill in a timely manner, if you have the funds.
I won't even attempt to explain the interest that you are paying by not taking a 10% discount.
One more thing, the agency that collections are turned over to is not a credit union. A credit union is similar to a bank.
Would you like to discuss finance some more? Would you like to START a discussion on ethics?
AND Are You Smarter Than A 5th Grader?
people on this blog are really being immature. i guess they have nothing better to do.
Observation is the key, i.e., recalling a familiar trainee posting consistently prior to the "resignation" of the CFO. I haven't seen a post from that blogger since. The general hospital employee does not have internet access however Administrative staff does. Its "clear as mud" some of the posts are from the department of "all access" if you notice the times. Being paid high dollar per hour with no college degree although her job description includes college preferred, making more per hour than her own daughter who struggled through nursing school with a child and is paid for defending her boss. Very sad.
Hey how did we pronounce that name anyway? No one seems to know.
How would you know what any body makes in the hospital?Unless you are in adminstration,you don't have a clue.Also it's none of your business what a nurse makes!I dought vary seriously that she is being paid to protect her or anyone
else's boss.She was honered tonight for 30 years of service.Not to many nurse's starting should make more then a 30 year executive assistant!You people are way off here,and it woulden't hurt any of you to know the facts before you bring up one child.Shame on you.Because she might know what's taken place does not make her wrong.
The CEO should have the right to manage the organization. This does come with accountability for what he decides to do with his hired responsibility. All the VPs at FMHHS have been groomed and mentored by Mr. Hanson. The entire unit is responsible for the resulting mess that exists now. To think that they are not self serving is naive, that is why they are in the position where they are . If the VPs were concerned so much for the hospital, why are nurses understaffed on the floor with a Nurse as a vice president, Quillman, and why does a relatively unexperienced physical therapist be given the job as director of physical therapy at Floyd, by Truman ? The answer is simple. It's all politics, nothing is earned by merit and all is done to promote themselve and not for the greater good. Fire all of them, CEO and VPs, start anew and reclaim what was once a great hospital and admired by all the big hospitals.
What a laugh...90% of all employees who miss out on a promotion in every organization claim that it "is all politics." Your time and energy would be better spent looking in a mirror and figuring out what you need to do better in order to get ahead.
7:09 anonymous: Obviously you are not aware of the politics in the hospital. Its almost as bad as it was in the Fender days 21st century style. Often positions posted are filled before they interview but policy dictates the interview process. Your percentage rate should be at least halved to be true to the reality. Its not merit in that facility otherwise those in power would not be in their positions. They do the best they can with what they have I guess. Summarize what we have in power, Senior powers nearing retirement, others dog paddling under their direction, valuable people being asked to retire/resign or terminated and being replaced by interims and consultants on a part-time basis, financial problems to the tune of over 11 million they are attempting to recoup by cutting in areas of their choice rather than what is best for the overall budget. No focus has even been placed on cutting staff not related to patient care. The place is in turmoil with physicians and employees frustrated. If you only knew.....
BLEAH!!! SOUR GRAPES!!
Some of us are happy where we are and like what we see in the mirror everyday. Mr. Hanson has set up things at FMHHS to have VPs and directors follow the company line and not have a diversity of ideas to make things better. I wonder if those in administration will be able to look in the mirror and like what they see after all the investigations are finally done and we find out just how much was done inappropriately.
WATCHER: Do you know anything about being in management? Disagreements are worked out WITHIN the management team...but when the discussion is over, or when the designated leader decides on a course of action, managers either support the team objectives or they should resign. Only the worst kind of manager would badmouth policies or decisions outside the management group. If you don't understand that, you clearly have no idea why some people are in leadership roles and others aren't.
3:56 PM,
I guess then since this mess was caused by the " management team ", then all the team should be dismissed.
I know plenty of excellent managers who don't necessarily "badmouth" policies, but who are honest about how they view them and why. Speaking as a public servant who deals with lots of managers in lots of different areas of healthcare and community/social services in lots of different places, I can't have any faith in the strength of my professional relationships with these people when I know they won't hesitate to lie about how wonderful things are. I'm not blind, and neither are their subordinates. And I don't know anyone who likes being manipulated or lied to.
There's a time and a place for "Follow this rule because I said so," versus "I didn't make this rule, but we all have to follow it, and make of it the best we can."
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