From Healthleaders Magazine Jan, 2005:
Upping the Ante
Two years ago, workers at Health Alliance of Greater Cincinnati received $50 gift cards to Kroger grocery stores. The next year, they got $100 MasterCard gift cards. So what's the perk for 2004? Try $5 million. The seven-figure distribution to eligible employees is part of the Health Alliance's innovative recruitment and retention program known as SOAR, an acronym for "Success of Associates = Recognition."
Feb 1, '05
Quote from kat911
I work for a not for profit hospital and we do make money some years. .
I believe the charity hospital I work for also does a good job of compensating its employees. We pay retention bonuses, have a reasonable retirement plan, insurance coverage, etc. It's just not dependent on making a profit -- and I don't think I would want it to be. I wouldn't our staff to associate "cutting expenses" with getting more more money for themselves. It might lead to "cutting corners."
I once taught an orientation class to a nurse who came from a hospital that was very money conscious. During the class discussion, I asked for the rationale of why used a certain product and did a certain procedure a certain way. Her response was, "Because it is cheaper?" ... My answer, was "No ... because it is better for the patient and proceded to explain why." That lead to a great discussion of the different philosophies of the 2 hospitals. Our starting point was what was best for the patient -- and then tried to find an economical way to provide it. The other hosptial always started with the cheapest option and required extensive justification to try something different. Her perception of the culture at her former hospital was that it had become "all about the money." We both agreed we liked our hospital's philosophy and culture better.
I'm not saying that profit-sharing in the health care arena always leads to shoddy care and/or is always wrong. But I do think we need to be very careful about having the staff directly correlate the size of their paychecks with the amount of money they save the institution each day. Such a direct connection has lead to some horrible decisions in some HMO's on a large scale.
Just trying to explore the downside of a suggested strategy and promote a balanced view ...
Last edit by llg on Feb 1, '05