PA hospital playing hardball with workers

[RightIsWrong]

I know that the CEO/owners of this hospital have this right and I respect that. However, is it a sound business decision to make this threat and issue this ultimatum (that they will close the hospital before negotiate with the union)?

I don't think so personally. I know that the hard thing to do for the workers would be to take a stand and loose their jobs, but I think that they gain the leverage in the long run.

First off, the owners would take a HUGE loss if they followed through on their threat. I'm sure that some of them have mortgaged their personal assets to get the money to purchase the hospital from the previous owners. Secondly, if the workers concede to the threats now, they will never, ever get anything in return other than a paycheck that will not keep up with inflation because the owners will resume the same hardball tactics that worked this time around. Obviously, from the bolded sections below, the CEO/owner's word isn't worth all that much.

I'd like to read some of your thoughts about it. Oh, and to keep the flames at a minimum, I have stated, and I'm sure that everyone else agrees with me on this, that it is well within their rights as owners to do this. I am hoping to get opinions about thesensibility of the decision to handle the "negotiations" in this manner. Not whether or not they can.

Source

Brownsville hospital owner gives ultimatum to workers

Friday, January 06, 2006
AP

A hospital will close within 90 days unless its unionized employees agree to concessions and withdraw unfair labor charges, its chief executive officer said.

"You know what I want. Give it to me and I will not close this hospital," Gary Gosai, chief executive officer of Tara Hospital, told employees yesterday.

The ultimatum came two days after the nurse's union, the Pennsylvania State Education Association, voted unanimously to allow its negotiators to call a strike if contract talks are unsuccessful.

The former nonprofit Brownsville General Hospital was renamed in June after a group of physicians purchased it and made it a for-profit operation. The new owners said they planned to increase staff and turn the business around, but at least 60 employees have been laid off in the past two months and all licensed practical nursing positions were eliminated.

Investors have lost at least $1.5 million in assuming ownership of the hospital, Mr. Gosai said.

"There isn't going to be any negotiations from now on," Mr. Gosai said. "It's all up to you."

Denise Seman, president of the nurses' union, said both sides have to work together. She said Mr. Gosai threatened to close the hospital before, when the nurses complained about the contract offer, and "then said it was a misunderstanding."

 

[zendari]

Give the unions an inch and they claw at you for a mile. Better to cut losses while you can.

 

[EatSpam]

Originally posted by: zendari
Give the unions an inch and they claw at you for a mile. Better to cut losses while you can.

Yeah, damn the workers.... you have to teach those serfs a lesson, even if it costs you a few pennies.

 

[EagleKeeper]

The unions are not qualified to run the place. Many unions will run companies into the ground.

Shut down the hospital and it will break the union.

 

[RightIsWrong]

So I am gathering that Zendari and Eagle endorse this as a sound business decision?

Also, how have the executives been doing as far as "running the place"? They have cut jobs and expenses and still have $1.5 mill in losses? Doesn't exactly scream that they should be held as saviours of the business world. Personally, I have found that you can pay a little more to your employees or give them a little added incentive to enjoy their jobs and it makes you more money than if you cut costs to the bone.

Happy employees make for happy customers and increase the revenue generated. My mother and oldest sister happen to have been born in this hospital. It is a small town outside of Pittsburgh that doesn't really have much going for it. However, there really isn't any competition except for another hospital just like it about 12 miles away. They have the ability to draw the locals to their hospital instead of having them drive to the other if they just provide service in a manner in which others are desiring. By threatening the employee's livelyhood, you aren't going to get employees that want to do their jobs, let alone go the extra mile to sell your business to the few clients that you haven't already alienated.

 

[EagleKeeper]

The story does not go into detail on how the hospital came into the situation.

They had ideas of turning the hospitla around; reality apparently has set it because of the layoffs.

Layoffs piss off unions; unions then attempt to fight back. Most unions think that business has deep pockets; however, startups do not always.

If the customer base does not exist to support a profit for the hospital; then either costs have to be cut or the business closes.

The hospital should not be forced to run at a loss. This is what their position is.

 

[homercles337]

Screw those greedy, lying owners. Let them close it and loose their investment. All those employees will definately find work at another hospital. The health sector has a dearth of workers. Shoot i wish i had gone into health care--i would definately have a job right now if i did.

 

[conjur]

Originally posted by: zendari
Give the unions an inch and they claw at you for a mile. Better to cut losses while you can.

We saw what happened in West Virginia when unions were pushed aside. Still don't see you posting in the mine disaster thread that unions are evil.

As for this case, seems we're missing a lot of detail. Are the nurses being required to work much longer hours now? Are their duties expanded? Are the pay and benefits being increased to match longer hours/more duties if that is the case?

 

[mect]

As stated above, why do nurses need a union? My brother was offered a job during his second year in a four year nursing program for when he finished. There is such a shortage of nurses in this country that, as stated, if these owners don't know how to run a business, let it die. I'm not totally anti union, but here I don't see a need. Although, as others have pointed out, a lot of details are missing.

 

[purepolly]

Originally posted by: mect
As stated above, why do nurses need a union? My brother was offered a job during his second year in a four year nursing program for when he finished. There is such a shortage of nurses in this country that, as stated, if these owners don't know how to run a business, let it die. I'm not totally anti union, but here I don't see a need. Although, as others have pointed out, a lot of details are missing.

Why do nurses need a union? PATIENT SAFETY...PATIENT SAFETY...PATIENT SAFETY.
and one more time... PATIENT SAFETY. Increasing patient acuity tied with management trying to inrease profit margins lead to higher patient to nurse ratios and less time we nurses have to take care of each patient and can lead to increased risk of medical error.

Nursing isn't like manufacturing where you can take a defective product and put it aside to resolve later. One demented combative patient alone can demand all your time on a shift, yet you still are responsible for all your other patients also. Scary, huh, if someone is coding. Think about it.

 

[sandorski]

Methinks the Owners didn't think this through very well. How did the Hospital survive before? It either had some kind of Charity funding to keep it going or put everything back into Operating Costs. If Charity Funding, did they just think they'd be able to make up for it automagically? If every $ went back into Operating Costs, are they only cutting Costs as a way to generate Profit?

The Union/Employees have the upper hand and these Drs/Owners are going to lose their shirts or create an Employer/Employee relationship that will take years to heal.

 

[TraumaRN]

Originally posted by: purepolly

Originally posted by: mect
As stated above, why do nurses need a union? My brother was offered a job during his second year in a four year nursing program for when he finished. There is such a shortage of nurses in this country that, as stated, if these owners don't know how to run a business, let it die. I'm not totally anti union, but here I don't see a need. Although, as others have pointed out, a lot of details are missing.

Why do nurses need a union? PATIENT SAFETY...PATIENT SAFETY...PATIENT SAFETY.
and one more time... PATIENT SAFETY. Increasing patient acuity tied with management trying to inrease profit margins lead to higher patient to nurse ratios and less time we nurses have to take care of each patient and can lead to increased risk of medical error.

Nursing isn't like manufacturing where you can take a defective product and put it aside to resolve later. One demented combative patient alone can demand all your time on a shift, yet you still are responsible for all your other patients also. Scary, huh, if someone is coding. Think about it.

That hits the nail RIGHT on the head right there...and for the record running a for-profit hospital is a tough deal given the state of health care in this country. And eliminating all LPN level positions? Thats no surprise the American Nurses Association is pushing for nursing to be a bachelor's degree and up ONLY position associate's degree wont cut it anymore.

I think both sides need to remove their heads from their arses and consider who's most important here.....THE PATIENTS!!!!!!

 

[trenchfoot]

good business-persons would not have gotten into the mess these new owners find themselves in. unless, the main goal of the new owners was to bust the union in the first place.
it seems to me the major problem in this case is that the hospital converted over from a non-profit to a for-profit business entity. this conversion brings a host of intangible problems that management seems to want to brush aside and not give it the consideration it is due.
when the hospital was in non-profit mode, it was to the unions' advantage, as the profit motive was not a consideration during negotiations, merely that the operation supports itself, if even.
now that the profit motive is the main objective, the profit has to be carved out of the existing operating expenses where there was no need to previously. the profit therefore, has to either come from reducing operating costs and/or increasing revenues. the strategy of juggling that thus becomes the negotiating points in the new contract negotiations.
whether or not the hospital was subsidized, once it became for-profit, that subsidy probably vanished, thus applying even more pressure to reduce operating costs/ increasing revenues.
what must not be forgotten is that there are many hospitals that are quite profitable and it's employees are unionized. therefore, a balance point does exist in the health care business where both union and management can create a favorable outcome if that is their intent.

*edit for clarity*

 

[TraumaRN]

Alright apparently this new CEO isnt a Doc....

http://www.bghlink.com/getpage.php?name=message

he Board of Directors of Tara Hospital at Brownsville is pleased to announce the appointment of Mr. Gary Gosai as the new President and CEO of the hospital, effective November 28, 2005. In an effort to rebuild the financially struggling hospital, Mr. Gosai has announced to the Board of Directors that he has agreed to serve in this capacity. With more than 15 years of healthcare experience, Mr. Gosai will be responsible for all strategic, operational and clinical activities of the hospital. Mr. Gosai?s long term vision includes delivering quality affordable healthcare to all members of the community. ?I am sincerely looking forward to working with the community leaders, as well as, the hospital?s medical staff to provide excellent care and enhance the healthcare services to the community,? Gary Gosai said.

Since its change from a not -for -profit to a for - profit status March 1, 2005, Mr. Gosai has volunteered more than 30 to 50 hours per week trying to bring the hospital to stability. For the past decade, the hospital has been teetering on the verge of bankruptcy. While previous administrators focused on putting out fires and crisis management, Mr. Gosai will focus on generating new sources of revenue to keep this hospital a thriving full service entity for the community. In his new role as CEO, he is committed to adding new services to the community hospital.

Mr. Gosai has long valued professional and community ties within the Mon Valley and Pittsburgh areas. He has also been actively involved in the hospitals leadership since March 1, 2005 serving as Chairman of the Board. ?We are pleased to have someone of Mr. Gosai?s caliber leading the hospital. Tara Hospital is at its turning point, and Gary Gosai is well poised to take the helm and build on the hospitals future and success to benefit the community. Gary possesses the core values and vision to direct and grow this hospital,? states Lori Spina, Director of Marketing/Public Relations.

Mr. Gosai entered the workforce as a janitor and through hard work and perseverance he has evolved to the President of Advanced Imaging, Inc. a full service medical imaging company with locations in Chicago, Erie and surrounding Pittsburgh areas. Mr. Gosai holds a Master?s Degree in Engineering from the Farleigh Dickinson University in New Jersey.

And this is a tiny hospital....doing some digging only about 100 beds and it's in a rural area which probably means a definite lack of people on medicare/medicaid or even having health insurance which is a big bread winner for alot of hospitals....

 

[EatSpam]

Originally posted by: EagleKeeper
The unions are not qualified to run the place. Many unions will run companies into the ground.

Shut down the hospital and it will break the union.

:laugh: Of course unions aren't perfect, but management has done a GREAT job running companies into the ground... witness GM, Enron, Tyco...

 

[techs]

Originally posted by: zendari
Give the unions an inch and they claw at you for a mile. Better to cut losses while you can.

Yes, just like those stinking mine workers who want safer mines.

 

[3chordcharlie]

Originally posted by: EagleKeeper
The unions are not qualified to run the place. Many unions will run companies into the ground.

Shut down the hospital and it will break the union.

No, but nurses are more qualified to run hospitals than most of the people who actually run them.

 

[EatSpam]

Originally posted by: 3chordcharlie

Originally posted by: EagleKeeper
The unions are not qualified to run the place. Many unions will run companies into the ground.

Shut down the hospital and it will break the union.

No, but nurses are more qualified to run hospitals than most of the people who actually run them.

No they can't.... you need an MBA to run a business, dontcha? :laugh:

 

[TraumaRN]

Originally posted by: EatSpam

Originally posted by: 3chordcharlie

Originally posted by: EagleKeeper
The unions are not qualified to run the place. Many unions will run companies into the ground.

Shut down the hospital and it will break the union.

No, but nurses are more qualified to run hospitals than most of the people who actually run them.

No they can't.... you need an MBA to run a business, dontcha? :laugh:

Bah humbug.....to that!!!!

Michael Duggan, 47
President and CEO
The Detroit Medical Center, Detroit
Revenue: $2 billion

Duggan led a $113 million financial turnaround of The Detroit Medical Center by attracting paying customers through 29-minute emergency room guarantees and recruiting top doctors to the nine-hospital system. He?s been helping to keep the momentum going by touting the DMC as a medical knowledge hot spot through its academic affiliation with the Wayne State University School of Medicine.

Education: Bachelor's degree and law degree from the University of Michigan

Previous jobs: Elected Wayne County (Mich.) prosecutor, 2000; joined Wayne County executive's office, 1987, as assistant corporate counsel, promoted to deputy executive, overseeing a $1.5 billion budget, 10 county departments and 6,000 employees.

http://www.modernhealthcare.com/page.cms?pageId=745
http://www.crainsdetroit.com/cgi-bin/page.pl?pageId=654

He would be my ultimate boss(I work for the DMC)....and spare me the irony of a prosecuting attorney running a medical center :laugh:

 

[zendari]

Originally posted by: EatSpam

Originally posted by: EagleKeeper
The unions are not qualified to run the place. Many unions will run companies into the ground.

Shut down the hospital and it will break the union.

:laugh: Of course unions aren't perfect, but management has done a GREAT job running companies into the ground... witness GM, Enron, Tyco...

Yup, out of thousands of companies keep pointing at 3 of them. Nevermind that the autoworkers union was partially responsible for GMs issues.

 

[BlancoNino]

Yes, just like those stinking mine workers who want safer mines.

Because Unions are the only answer for safer mines?

 

[BlancoNino]

No, but nurses are more qualified to run hospitals than most of the people who actually run them.

I can see it now. "Nurses take over hospital. Nurse wage goes up $20! Doctors to do all the work!"

 

[3chordcharlie]

Originally posted by: BlancoNino

No, but nurses are more qualified to run hospitals than most of the people who actually run them.

I can see it now. "Nurses take over hospital. Nurse wage goes up $20! Doctors to do all the work!"

Funny enough, most nurses I know think there are many ways to improve hospitals, and opaying nurses more isn't one of them.

 

[BlancoNino]

Funny enough, most nurses I know think there are many ways to improve hospitals, and opaying nurses more isn't one of them.

Everyone has ideas to improve the company they work for. But those ideas seem more realistic when you're not in a position to put them into effect or pay for them.

 

[3chordcharlie]

Originally posted by: BlancoNino

Funny enough, most nurses I know think there are many ways to improve hospitals, and opaying nurses more isn't one of them.

Everyone has ideas to improve the company they work for. But those ideas seem more realistic when you're not in a position to put them into effect or pay for them.

*shrug* when you treat patients like boxes in a warehouse because you're in business to make a profit... it's not so surprising.