MORGANTOWN — Mon Health Medical Center has suspended employee raises for a year, effective July 15, according to a memo provided to The Dominion Post.
The memo, dated July 19, from interim President and CEO Tom Senker, says, “Mon Health Medical Center, like many other hospitals, has been facing significant financial challenges over the last 12 months. Increases in operating expenses have outpaced our growth in revenues.”
Corresponding with the pay freeze, the human resources and finance departments will review compensation programs and provide recommendations for possible revisions. Changes will be contingent on the success of an operations improvement plan launched to address the financial challenges.
The plan will address several areas: Pharmacy, revenue cycle, physician practice, clinical care practice, strategic sourcing and workforce efficiency.
“These plans will enable us to continue to provide quality, cost effective care,” the memo states.
A workforce efficiency initiative will look at benchmarks to decrease overall paid hours.
Senker fleshed out the hospital’s thinking in a phone interview with The Dominion Post.
“The hospital has and continues to enjoy a strong financial base,” he said, but has passed through a “somewhat tumultuous period.” He was referring to the resignation of previous CEO Darryl Duncan in March and the brief interim CEO stint of former Chief Operating Officer Dottie Oakes in the same month.
Now back at Mon Health as interim — Senker previously served as president and CEO from 1983-’99 — he said his question is, “How can we stabilize the organization and prepare it most effectively for the future?”
Suspending raises, he said, is not an unusual practice across the healthcare industry — undergoing great changes now — and many others.
Mon Health’s overall financial performance has diminished from past performance, he said. “We continue to have an extremely sound foundation and strong fundamentals,” he said. “It’s not in any way a critical time for us but one in which … to prepare for the future and be as strong as we can we need to tighten out belt a little bit. … We’re very confined that we’ll return to where the organization has always been, and beyond.”
The Operations Improvement Plan will help reduce costs and improve efficiency, he said. For example, pharmaceutical costs have climbed and they will look at ways to reduce those.
Senker emphasized that the hospital continues to be recognized for its performance in quality and safety areas, noting the recent Leapfrog Group and Healthgrades awards for performance in those areas.
“We’re well recognized for our quality and patient experience,” he said.
A reader notified The Dominion Post of the memo and supplied a copy. The reader, who asked not to be identified, questioned the costs and the value of the system’s recent rebranding in light of the current situation.
Senker said this was an operational decision made by prior leadership based on performance of the organization at the time. It wouldn’t be appropriate to second guess that now.
He observed that the hospital has been fortunate to provide raises through the years. No one’s pay has been cut under this move. “This organization has always operated as a family and the response has been excellent under the circumstance.”
He concluded, “Like any organization we recognize there are opportunities for improvement. We’re focusing in on them and we feel very optimistic going forward.”
