Retention idea: Hospital gives 20% of any annual surplus to employees

  1. 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."
    http://www.healthleaders.com/magazin...categoryid=426
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    About NRSKarenRN, BSN, RN Moderator

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    9 Comments

  3. by   oramar
    This happens all the time in the business world. Don't hear to much about it in healthcare. Usually you get a pay cut in hard times and a pay freeze in good times.
  4. by   llg
    Surplus? What's that? I work for a charity hospital. We have to raise a couple of million dollars every year through donations/fund raisers just to break even!

    I am sure there are some "for profit" hospitals that are actually making money. However, many of the best hospitals are in the "not for profit" category and don't have a surplus at the end of the year.

    llg
  5. by   EricTAMUCC-BSN
    Karen, cool article. Nice to see administration recognizing their employees. Money for retirement is a great thing so are refunds to paying consumers, hands on educational classes that promote nursing skill and improve patient outcomes, highly compensated supportive and experienced trainers that understand the general basic principle of do more good than harm, upgrades in equitment like IV pumps, tele monitors, hospital beds, defibrillators, CT scanners; educating diagnostic techs (ie CT, Ultrasound, MRI, Rad) that their excellent or poor images will determine patient outcomes, lowering nurse to patient / physician to patient ratios, paid time off.
  6. by   pickledpepperRN
    http://www.healthleaders.com/magazin...categoryid=426

    ...Executives at the system's hospitals say the SOAR program has been a big morale booster, changing behaviors in ways that benefit the bottom line....

    What about patient care?
  7. by   kat911
    Quote from llg
    Surplus? What's that? I work for a charity hospital. We have to raise a couple of million dollars every year through donations/fund raisers just to break even!

    I am sure there are some "for profit" hospitals that are actually making money. However, many of the best hospitals are in the "not for profit" category and don't have a surplus at the end of the year.

    llg
    I work for a not for profit hospital and we do make money some years. That money is rolled back into the facility through a nice annual employee bonus but mostly through new technology. We have some of the newest technology in the state. I imagine some of it is also going to help build new facilities as well, hence the giant "swimming pool" out front. Administration is working hard to do things right and all the changes we have gone through in the past few years are beginning to make a difference. We still have a way to go but administration seems to be moving along the right track.
  8. by   kat911
    Quote from spacenurse
    http://www.healthleaders.com/magazin...categoryid=426

    ...Executives at the system's hospitals say the SOAR program has been a big morale booster, changing behaviors in ways that benefit the bottom line....

    What about patient care?
    Usually if the patients aren't getting good care then morale usually is not good.
  9. by   barefootlady
    Too bad this is not a virus like the flu and other facilities can't "catch" on the this idea.
  10. by   EricTAMUCC-BSN
    We need more people like you in administration.




    Quote from kat911
    I work for a not for profit hospital and we do make money some years. That money is rolled back into the facility through a nice annual employee bonus but mostly through new technology. We have some of the newest technology in the state. I imagine some of it is also going to help build new facilities as well, hence the giant "swimming pool" out front. Administration is working hard to do things right and all the changes we have gone through in the past few years are beginning to make a difference. We still have a way to go but administration seems to be moving along the right track.
  11. by   llg
    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 ...
    llg
    Last edit by llg on Feb 1, '05

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