1 / 41

Brian Sweeney, RN, FACHE Vice President for Clinical & Support Services Joseph Anton, RN

Collective Bargaining in an Era of Healthcare Reform; How One System Saved $18 Million Through Negotiations. Brian Sweeney, RN, FACHE Vice President for Clinical & Support Services Joseph Anton, RN Vice President for Clinical & Support Services. Agenda.

Rita
Download Presentation

Brian Sweeney, RN, FACHE Vice President for Clinical & Support Services Joseph Anton, RN

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Collective Bargaining in an Era of Healthcare Reform; How One System Saved $18 Million Through Negotiations Brian Sweeney, RN, FACHE Vice President for Clinical & Support Services Joseph Anton, RN Vice President for Clinical & Support Services

  2. Agenda • Organizational profile & union environment • Contract negotiations • Strike preparations • Outcome and return on investment

  3. Objectives • Describe how to formulate a strike plan to strengthen your negotiating position and minimize revenue loss from a work stoppage. • Identify tactics to reduce operating expenses associated with a collective bargaining agreement. • Demonstrate how to assemble a negotiating team that will lead to optimal outcomes.

  4. I. Organizational Profile and Union Environment

  5. Organizational Profile • Philadelphia, PA • 953 bed academic health system • 3 hospitals • 46,000 admissions • 100,000 ED visits • 8,000 employees • 3 unions

  6. Key Facts – District 1199c • Affiliate of National Union of Hospitals & Health Care Employees, AFSCME, AFL-CIO • 72,500 national/17,000 local/1,ooo Jefferson members • Experienced leadership team • Simultaneous negotiations with 4 hospitals • Previous strikes • Key positions: EVS, nursing assistants, transport sterile processing, nutrition, mail room & supply chain

  7. Different Times…Higher Stakes

  8. II. Contract Negotiations

  9. Negotiation Objectives • Secure a realistic and responsible collective bargaining agreement given ACA • Maintain high quality care • Protect patients, visitors, and staff • Continue academic activities • Maintain image/reputation • Minimize revenue loss • Provide consistent messaging

  10. Approach • Engage multidisciplinary teams • Analyze data • Develop formal plans • Synchronize timelines • Communicate effectively • Educate union

  11. Negotiating Team • Hospital administration • University administration • Human resources • Internal counsel • Outside labor counsel • Support – financial administration

  12. Starting Point • Total annual cost of contract = $52.5 million • Wages - $36 million • Health and welfare - $12 million • Pension - $3.9 million • Training/legal - $720,000

  13. # 1 - Wages • Challenges: • Highest wages in marketplace • Payroll drives pension costs • Union will oppose anything reducing dues • Goals: • Preserve current workforce salaries • Two tiered wage structure

  14. # 2 - Health and Welfare Benefits • Challenges: • Multi-employer plan • Most costly benefit • Rich plan with low co-pays • High ED utilization & low PCP engagement • Goals: • Maintain contribution rate for 30 months • Reduce benefit costs • Activate disease management

  15. # 3 - Pension • Challenges: • Grossly underfunded • Freeze is best option • Limited options with federal requirements • $62 million withdrawal liability • Rate increase in 2014 • Goals: • Migrate to defined contribution plan • Develop hybrid alternative

  16. # 4 - Earned Time Off (ETO) • Challenges: • Poor attendance • Paying OT to cover call outs • “Right” to use time • Implement for non-union employees first • Goals: • Migrate to ETO plan • Resolve other matters first

  17. III. Strike Preparations

  18. Contract Ratification or Strike? • Potential scenarios • Contract ratification prior to expiration • Contract expiration/pre-announced strike • 10-day notice • Unannounced walkout

  19. Strike Preparations • Challenges: • Take firm position to reduce 1199C expenses, increasing likelihood of a strike • Uncertain when strike will occur • Goals: • Minimize disruptions to operations • Maintain security for patients, visitors, and staff • Maintain image/reputation through aggressive PR

  20. Financial Implications of Strike • Strike estimated to cost $1.5 million for 8 weeks • Reduction of 1199C payroll helps offset expenses • Reduced admissions budget • Unable to quantify risk of PR/media exposure

  21. Developing A Strike Plan • Confidential playbook • Formal written document • Multidisciplinary involvement • Clear written procedures with accountability • Set timelines

  22. Replacement Staffing • Staffing plan - day 1-7 - internal • Redeploy non-clinical staff • Train within 7 days of contract expiration - visible • Staffing plan - day 8+ - external • Large, experienced national firm • Cost • Authorization to deploy • Logistics

  23. Security • Jefferson • Outside security firm • Philadelphia Police • US Marshall Service

  24. PR/Communications • Hired outside crisis communication firm • Developed tools for departmental managers – FAQs, progress reports • Trained spokespersons for media inquiries • Prepared statements for patients, media, & vendors • Monitored social media

  25. Supply Chain • Verified vendors will deliver • Stockpiled medical/surgical supplies, pharmaceuticals, and office supplies • Secured refrigerated trailer for perishables • Identified off site depots for deliveries • Used undercover vehicles for deliveries

  26. Legal and Regulatory • Prepared injunctions • Emergency arbitration hearing • Conducted management education • Reviewed communication • Hold union accountable for following laws • Notification to DOH/Joint Commission

  27. Table Top Exercises • Test the plan • Did people read it? • Did we miss anything? • Are we ready? • Scenarios • Access to loading dock will be impeded for an extended period of time given an excessive number of protesters. • What is the alternate plan? • How is it implemented?

  28. Labor Operations Center (LOC) • Leads implementation of the strike plan • Staffed 24/7 • Labor hotline • Monitor campus security • Coordinate deliveries, communication and staffing • Monitor media activity and coordinate response

  29. Staffing Center • Coordinate logistics for inbound staff • Travel, hotel, meals, transportation • Identification • Health screening and immunizations • Scheduling • Record keeping • Training with department managers

  30. Security Responsibilities • Demonstrate preparation to reassure patients/staff • Protect perimeter • Coordinate efforts with law enforcement • Videotape picket line activities to gather evidence • Provide executive protection • Escort employees and vehicles safely in and out

  31. Rallies

  32. IV. Outcome and ROI

  33. Results • Settled on July 1st at 3 am • Six year agreement • Health and welfare reopener in July 2014 • $18,609,304 million in savings over life of contract • Wages/pension- $12,391,486 • Health and welfare- $1,913,868 • ETO -$4,303,680

  34. ROI Cost of strike preparedness - $262,000 Legal fees - $240,000 Public relations firm - $36,000 Total - $540,000 Return – 35 x initial investment

  35. ETO • OT hours per pay • Before - 1,310 • After - 591 • Time off hours per pay • Before - 5,887 • After – 2,388

  36. Lessons Learned • Engage operational leaders in negotiations and strike preparations • Link negotiations to strike preparations • Ensure preparations are visible • Be sure you are ready to take a strike! • Continue communication on terms after ratification • Understand role of other hospital settlements • After action review – we will do it again in 6 years

More Related