Lehigh Valley, Pa. (July 2, 2009) - Lehigh Valley Health Network (LVHN)
announced today that senior leaders and directors will face a reduction in
wages, staff will see no increase in wages, and many employees will now be
required to pay a fee for their health plan coverage under the budget approved
by its Board of Trustees for fiscal year 2010. The budget provides for a $35
million (2.5%) patient services net margin, which helps to pay for the
equipment, programs, services and staff that allow the health network to care
for the community. The health network trimmed $64 million to balance the
budget.
LVHN chose the options of upper level wage reductions and a health plan
coverage fee for employees over staff reductions because the health networkƒs
people are its most important asset, according to Elliot J. Sussman, M.D.,
president and CEO. „We believe preserving employment is the best course. We
believe it is important to maintain a highly qualified and competent staff to
deliver the quality care our community expects and deserves now and well into
the future.
Sussman said the network had the option of reducing its workforce to balance
the budget and chose not to do that. According to a recent Thomson Reuters
survey, 47% of U.S. hospitals are expected to make staff cuts this year.
Instead, about 300 top senior leaders and directors will have their pay
reduced by 2.5% effective in September, staff will not receive merit pay
increases based on annual performance reviews, and full-time employees with
dependents enrolled in the health networkƒs health plan will be required to
make a payroll deduction effective Jan. 1, 2010. A payroll deduction will not
be required for full-time employees for their own coverage.
„We have structured all of these measures to ensure that colleagues who earn
the lowest wages are affected the least, Sussman said.
Sussman credited the hard work and dedication of LVHNƒs staff for
helping the organization to fare better financially than most other
not-for-profit health systems. „We treated more patients over the last year
while many other hospitals have seen a leveling off or a decline. LVHNƒs
inpatient bed use is up 4.5% over last year. However, Sussman added that the
economic recession is taking its toll by forcing many people to put off health
care decisions. Government reimbursements are not meeting the cost of care for
Medicare and Medicaid patients, leaving hospitals to bear that burden.
Sussman said the health network continues the work begun months ago to
identify and implement initiatives to reduce expenses and improve efficiency.
These projects to ensure our patients receive appropriate care include
improving productivity, eliminating waste and reducing length of stay.
„We are confident that by managing costs and working more efficiently, we will
be better positioned to handle any additional pressures we may face.
Lehigh Valley Health Network includes three hospital facilities - two in
Allentown and one in Bethlehem, Pa.; eight health centers caring for
communities in four counties; numerous primary and specialty care physician
practices throughout the region; pharmacy, imaging, home health services and
lab services; and preferred provider services through Valley Preferred.
Specialty care includes trauma care at the regionƒs busiest, most-experienced
trauma center treating adults and children, burn care at the regional Burn
Center, kidney and pancreas transplants; perinatal/neonatal, cardiac, cancer,
and neurology and complex neurosurgery capabilities including national
certification as a Primary Stroke Center. Lehigh Valley Health Network has
been recognized
consecutive years as one of Americaƒs Best Hospitals, is a national Magnet
hospital for excellence in nursing, and has been honored seven straight years
among the top integrated health networks in the U.S. Additional information
is available at www.lvh.org
LVHN trims $64 million from 2010 budget
By EPBJ Staff - Posted on July 2nd, 2009
