Some past and relevant blurbs from out there…

Here’s a few that have gone around to help get a grasp on the chaos happening to undermine why people come to work for Providence…

Please send relevant info – we will post. Below is just a few of the emails we’re told have gone around.

#1 – From February 2014… regarding the generous 2014 across (oops! Almost) -the-board pay increase.
….Here’s what was just sent to all managers about it.
Merit pay increases for 2014

The Affordable Care Act remains a critical issue for communities across the country. This is evident by a nationwide trend in lower reimbursements and patient volumes. As a result, Providence was challenged in 2013, and we continue to prepare to meet these challenges in 2014. However, it’s important to remember that Providence is a strong organization and we are committed to the success of our people. We need to ensure they are rewarded and recognized for contributing their talents.
The 2014 salary increase is one and a half percent (1.5 percent). All eligible caregivers (employees) and core leaders who earn a rating of “Meets Expectations” or higher on their annual performance review will receive a 1.5 percent pay increase. Salary increases apply to all nonrepresented caregivers.
 
To participate in the performance review process and be eligible for a pay increase, caregivers must have been hired by Jan. 31, 2014, and core leaders must have been hired by Dec. 31, 2013.
 
Performance reviews completed and signed by the manager will automatically trigger processing of the merit increase; no additional action will be required
     I’m glad they’re fighting for us….
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#2  - An email found and given us that was sent to D.U.
Hello Dave,
 
Thank you for your refreshing, clear and welcome assessment of the previous year and the outlook ahead. It is greatly appreciated.
 
I have noted below an area of concern for many that I work with both here in Oregon and across the enterprise. I have offered this up not as a criticism but an opportunity for leadership to reasonably and responsibly respond to a growing feeling that for most of us the extreme changes in our own health care provision from Health Plans (which is now simply catastrophic insurance) creates a world where many have to actually decide between paying for a visit to the doctor and rent or food. This is a real scenario in many of the lives of Providence caregivers until they somehow manage to meet the very elusive $3000 deductible for the year. For most that does not happen and after the initial health wellness benefit runs out ($700 single, $1400 family), the choices and decisions around our health are serious and real. This is not a domain of the poor any longer, but for those that work and have a families and support the Providence Mission.
 
When this is equal for all, then there is the sense that we are in this together. However when the publicly available IRS returns (up through 2012) are reviewed, the contrast is shocking.
 
For Officers, Directors, Trustees, Key Employees and other “Highest Compensated Employees” the increases in each of the five years is much larger than the 2% offered to the rest of us (and in most cases much, much larger than that). Again, this isn’t about the equitable pay and benefits at a base level, rather it is about the increases/raises in Base Compensation, Bonus & Incentive Compensation, Other Compensation, and Deferred compensation granted to those employees.
 
For example, one of these employees compensated at a lowly $375,000 could reasonably accept a $7,500 raise (2%) like the rest of us, I am sure. Most of us have had to accept 2% over the last 5 years. As another example, Arnold Schaffer, CEO of PH&S California could greatly ease the way of thousands of employees by publicly announcing that he, too, would accept a 2% salary increase to align with everyone else. Given his total compensation for 2011, a 2% raise would equate to a very reasonable $69,766.90 increase to his salary, well above the average annual wage in the health care industry in the Southern California region in 2010. Imagine the goodwill and sense that we are in this together that would accomplish!
 
I brought this question up to the leadership of IS in one of our Open Forums last summer. I provided well in advance all of the documentation I had so they had time to prepare a thoughtful response and also so they weren’t caught off guard or made to feel embarrassed by such a critical and popular question on the fly. The question was really for a higher level of leadership in our organization which is why I give this to you at this time.
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#3 – A gem someone forwarded to us concerning the CORE plan …
frozen in 2009, last contribution they made was actually in 2010 but for 2009, and shows 2009 if you look at statements.
Knowles, Alan10:01 AM
but the pay credit freeze was ok, since they now do that to the other account. issue is CAP on CORE increase. CPI+1% with max at 4%. with inflation 0 we got 1% a couple years. but really PHS gained money off our core since they get more than 1%. they use this to “fully fund” the plan they say. 
With stock market doubling and seeing increases in teens per year, it would seem they should change how that interest we get is calculated since it was worked out in 2008 crash of markets and panic.

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#4  — New incentive program implemented – or why you only get 2.75%
Oh, only manager level pilot for this now.  Sure they will let it trickle down to our level some year, maybe one day. 
We need to fund a costly new incentive program in this time since managers so hard to replace?  So they already get more salary and extra vacation and double the automatic life insurance coverage because their lives are more valuable.  Now they need additional incentive.  What is harder to replace: an experienced SAN engineer or a mid-manager?  I don’t know why I am ever surprised around here.  And they have the audacity to invoke core values in support of this incentive program!  Funny, I don’t remember them being replaced by GREED, HYPOCRACY , DEMOTIVATE and SUPERIORITY.  Missed that memo. 
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#5 – PSMS Weekly Update – 9.10.2013
 don’t recall Mother Joseph accepting an inordinate amount of compensation for her work like the present CEOs are permitted to do while the others in the ministry are relegated to 2% monetary compensation and worsening disregarding health care benefits that affect everyone’s perception of the Mission.

 
Were those that gave the OK to %100  pay raises for some DEOs in Providence mindful of the Mission?
 
They have never revealed how God’s love played a role in that decision…
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#6 – PHS Status as a non-profit!
Could this be forwarded to someone who can provide a response to this?
Maybe we should ask the Secretary of State to review PHS status as a nonprofit?
Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. Like for-profit corporations, nonprofit corporations must file a statement of corporate purpose with the Secretary of State and pay a fee, create articles of incorporation, conduct regular meetings, and fulfill other obligations to achieve and maintain corporate status.
Nonprofit corporations differ from profit-driven corporations in several respects. The most basic difference is that nonprofit corporations cannot operate for profit. That is, they cannot distribute corporate income to shareholders. The funds acquired by nonprofit corporations must stay within the corporate accounts to pay for reasonable salaries, expenses, and the activities of the corporation. If the income of a corporation inures to the personal benefit of any individual, the corporation is considered to be profit driven. Salaries are not considered personal benefits because they are necessary for the operation of the corporation. An excessive salary, however, may cause a corporation to lose its nonprofit status.
How is a salary that doubled for the CEO (and was higher than any other Medical CEO) and other VPs and was higher than any other Medical CEO be justified?
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#7 – “Last ‘ask’ to save money (Hardy har har)
Providence is unique in that that we all espouse the core values and mission statement via the reflections and every other reference to the philosophy of Providence. That is how are we are justified in speaking up to these things in this workplace at any level…”

 
This is what makes these hypocrisies stink so much too.  This is very different that a company that has profit as the primary core value. The type of “professionalism” is different in my opinion. Tired of hearing that phrase which is just code for “be quiet and fall in line.”  
 
So many good quotes on this fundamental value of speaking truth to power.  I just don’t know how people don’t get it. Two most treasured things my mother ingrained in her kids was love for books and stand up for what you believe, no matter what.
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#8 -  “A public service announcement” – Take a look!
You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed below are included in that report:
•       an accountant’s report;
•       assets held for investment;
•       financial information and information on payments to service providers;
•       insurance information, including sales commissions paid by insurance carriers;
•       information regarding any common or collective trusts, pooled separate accounts, master trusts or 103-12 investment entities in which the plan participates;
To obtain a copy of the full annual report, or any part thereof, write or call the office of Providence Health & Services at 1801 Lind Ave SW, Renton, WA 98057, or by telephone at (425) 525-3355.
You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report.
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Seen any good emails? Send them in – let’s get vocal here and with your groups!

Progress? Bonuses, Total Compensation – What’s Changed?

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From the last post we now go into the latest three years for which IRS returns are available to the public for Providence Health & Services. These are 2009, 2010 and 2011. What we want to see is how the regular Providence employee stacked up against the top executives in Bonus Pay and Total Compensation.
But let’s explain a few things to keep in mind as this was put together here.

  •  First, we generously pegged the average Providence Worker’s Pay to $50,000 a year to give us a something to work with. If this is too high in your case, just scale it back and hang your head further down than we are doing as we look at these results.
  •  Second, we chose the execs with the 12 highest packages, appalling as they are. There were about 15-20 more listed in the IRS returns and even more not listed (here in Eastern Washington there are even more) that still outdistance the average worker, but 12 shows plenty
  • Third, although the raises during this period for the Providence Worker was 2% every year (including 2012 and 2013, and now 1.5% in 2014) all in the name of “hard times”, “pull together”, “Let’s all do what we can to cut costs”, clearly something changed for those in leadership compensation between 2009 and 2011.
    ————–Look for yourself:

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And for Total Compensation, it’s worse… What is going on here?

You can figure the percentages yourself – We get 2% increases because times are tough and we must do with less – “Employ the CORE Values!” – They get a helluva lot more each year because “why??????

Groundbreaking Plan Would Base The Boss’ Salary On The Janitor’s

Read it, but don’t Weep!!  Stand up and Speak!

“…. In California, nurses are collecting signatures for a ballot measure that would cap nonprofit hospital CEO pay at $450,000 a year, just over what President Barack Obama makes. In Massachusetts, nurses submitted to the legislature an initiative that would fine any hospital, even for-profit, that pays its CEO more than 100 times the hospital’s lowest-paid employee.”   

A group of faculty and students at a small college want to cap the president’s pay based on what the janitors earn. About a dozen faculty members and 30 students at St. Mary’s College, a public school in Maryland, have proposed a plan to limit the salary of the highest-paid employee to 10 times that of the lowest-paid employee. The proposal recommends first raising the lowest yearly salary from $24,500 to $30,000, which is 130 percent of the federal poverty level for a family of four. A 1:10 pay ratio would then cap the president’s salary at 10 times $30,000, or $300,000 — $25,000 less than what the president currently makes. The activists used information on salary available only in paper form at the school’s library to find out what various workers on campus make, they said. The individuals who crafted the proposal collected anonymous statements from some the college’s lowest-paid employees, including security officers, housekeepers and grounds crew members, who revealed that they rely on food stamps, WIC, heating assistance and other public assistance. One worker said she can’t afford and therefore skips needed medications and medical appointments; another said she has to borrow money to send her children to school field trips. “I have to work overtime every week, had to let some of my bills go [unpaid] like my house phone, cable, and cut back on my heating, food, water, and my gas bill,” one worker wrote. “Sometimes I need to borrow money from friends, family, and by the time I get my pay check, I’m broke again.” The proposal is expected to be discussed at the college faculty senate meeting Thursday. In order to be implemented, the faculty senate will need to pass it along to the board of trustees, which will need to approve it. The board’s chair and CEO declined to comment to HuffPost. St. Mary’s isn’t the only institution facing a proposal to cap its highest earner’s pay. In California, nurses are collecting signatures for a ballot measure that would cap nonprofit hospital CEO pay at $450,000 a year, just over what President Barack Obama makes. In Massachusetts, nurses submitted to the legislature an initiative that would fine any hospital, even for-profit, that pays its CEO more than 100 times the hospital’s lowest-paid employee. In Europe, the EU has introduced caps on bankers’ bonuses. France has imposed limits on CEO-to-worker pay ratios at state-owned firms. Switzerland considered capping executive salaries at 12 times the company’s lowest wage. The U.S. Securities and Exchange Commission recently proposed requiring companies to annually disclose their CEO-to-median worker pay ratio, as a part of the 2010 Dodd-Frank Act. Some U.S. companies already either disclose their pay ratio or also cap it, including Whole Foods, NorthWestern Corp. and the Bank of South Carolina (where the CEO received four times its median pay of $48,000 in 2012). St. Mary’s pay ratio was 1:13 for the 2012-2013 year, according to the pay cap campaign site — far more equitable than corporate America. Among the 500 largest U.S. companies, the average pay ratio is a whopping 1:354 — up 1,000% since 1950, when it was 1:20. But at college campuses like St. Mary’s, two storms are converging. First, like corporate CEOs, college presidents’ salaries have shot up; 180 college presidents made more than $500,000 in 2011, compared to 50 in 2004, according to aChronicle of Higher Education analysis. Second, college tuition and fees in the U.S. have gone up 1,120 percent since 1978, a Bloomberg analysis found, leaving college graduates with an average of $26,600 in student loan debt. Both of these storms shake the core values of colleges that ascribe to the ideals of social responsibility and accessibility, especially public, liberal arts schools like St. Mary’s. At St. Mary’s, the total salaries of the president and vice presidents have risen 91 percent since 2000, according to the pay cap campaign. And student tuition has risen about 60 percent since 2000. In contrast, St. Mary’s lowest-paid employees have had their salaries increase 56 percent over the same time period, the activists say, and associate and full professor pay has actually increased at rates that are lower than inflation — 29 and 22 percent, respectively. St. Mary’s Interim President Ian Newbould said that the college does not have a position on the pay cap proposal because wages for staff are negotiated by a union. “I understand the thinking behind [the proposal],” Newbould said. “But it would be improper for the college administration to be talking about these issues outside of union negotiations.” He said that the board will consider the proposal when it is brought to them. Advocates of the proposal say they are in communication with union representatives and are open to their concerns. This chart by the advocates shows how tuition and executive pay have increased more quickly than salaries for lower earners: The college has taken some measures since 2008 to curb administrators’ pay, but the pay cap proponents say it isn’t enough. The expectation is that, by inhibiting rapid growth of executive pay, the pay cap would save money in the long-term that could be used to lower tuition, according to David Kung, a math professor at St. Mary’s and one of the campaigners. The proposal comes months after President Obama challenged colleges to develop innovative ways to make their schools more affordable. In the same speech, Obama proposed ranking institutions based on access, affordability and student debt. Here’s how the 1:10 pay cap ratio would increase the lowest salary, lower the highest and incrementally spread out those in the middle: Some have argued back against the proposal, saying that St. Mary’s should follow the free market. If it doesn’t, they say, the college will fail to attract talented executives. The school is currently in the midst of looking for a new president right now. Opponents also say that because higher pay at the bottom costs more, the college could be forced to cut jobs or contract out lower-paid positions instead of hiring in-house, and they argue current administrators could leave for jobs at colleges without caps. “Employers base pay according to workers’ productivity. This sort of pay cap proposal attempts to redistribute wages from the most productive employees to less productive employees,” said James Sherk, senior policy analyst at the Heritage Foundation. “In doing so it will severely distort hiring decisions.” The campaigners counter that exorbitant pay is no guarantee of excellence and that they want a president who values equity and is even willing to take a pay cut for it. “We’re deeply attached to our public identity,” said Sandy Ganzell, math and computer professor at St. Mary’s and one of the campaigners. “There’s no such thing as the best college president out there; there’s the best president for St. Mary’s … and that’s the person who believes in our mission.” The campaign suggests promoting from within instead of plucking administrators from other schools with the lure of high pay. “This was the norm in higher education for many years,” the campaign’s site reads. “A professor who understood the institution and wanted to be an administrator rose through the ranks and eventually took over as president.” Competing for talent with other institutions is unwise, campaigners say, since many of St. Mary’s competitors are better-funded, private colleges that can offer more money. It is unclear if St. Mary’s roughly 30-member board of trustees will approve the proposal. The earliest it could be implemented is in the 2015-1016 school year. In the meantime, Robin Bates, an English professor at St. Mary’s and one of the campaigners, said their proposal is gaining attention at other college campuses. “We’ve gotten emails from people around the country who are very interested in this. We’re sharing info with faculty members at other schools,” he said. “It would be wonderful to see this exported elsewhere.”

Providence Park Announces 15 Year Deal

How long before announcements of layoffs to go with the generous 1.5% across-the-board (our side of the board)?

“Terms of the 15-year agreement with the healthcare provider were not announced on Monday. Providence is Oregon’s largest private employer.” This was the public announcement for the latest “straw that broke the camel’s back.” This agreement with the Portland Timbers for naming rights to the former Civic Stadium and Jeld-Wen park has finally forced us to the creation of this forum outside of the Providence Health & Services environment.

The upcoming across-the-board pay raise for most regular Providence employees is rumored to be 1.5%, a rate that is lower than the 2% that Providence workers have had to settle for in each of the last five years. Along this has been drastic changes to employee health care coverage provided through Providence’s insurance arm, Providence Health Plan, while during the same time salary increases in one year alone for executives and others increased as much as 110%.