BOSTON, May 28, 2009
Hospital Staff Sacrifices To Save Jobs
When Layoffs Seemed Inevitable, Staff Banded Together To Cut Costs And Save Positions
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Play CBS Video Video Hospital Dying For Cash The Beth Israel Deaconess Medical Center in Boston made its name by caring for its patients, but now they're caring for each other after a $20 million deficit. Richard Schlesinger reports.
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Dr. DeWayne Pursely, one of the hospital department heads who took a voluntary pay cut. (CBS)
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"If you let them show it," said Paul Levy, the hospital's CEO, "they will do miracles."
The hospital needed a miracle when it came down with a $20 million deficit, reports CBS News correspondent Richard Schlesinger.
It looked like layoffs were inevitable - 6,300 people are employed full time at the hospital and 600 of them would have lost their jobs. And most of those jobs would have belonged to the lowest-paid employees, people who needed their jobs the most.
People like Ada Azotam, who works in the food service department.
"Twenty million dollars is big," Schlesinger said.
"It's a big number," Azotam said.
"Didn't that worry you?" Schlesinger said.
"I was afraid for a little bit," Azotam said.
But Levy tried something only a few executives have. He let employees see the numbers and asked for everyone's help.
"The response was, truthfully, as heartwarming as you could ever imagine," Levy said.
"It was just doing the right thing," said Dr. DeWayne Pursley.
The 13 department heads, like Pursley, took pay cuts that totaled $350,000 - that's about 10 jobs saved.
"You have expenses," Schlesinger said.
"I have three kids in college," Pursely said.
And other doctors took out their checkbooks. The checks came in, some for $500, some $10,000 or $15,000. That raised more than $326,000 - more jobs saved.
And there were more sacrifices. Senior Management took pay cuts. Everyone agreed to forgo 401(k) matching payments, postpone raises, give back some raises already awarded and reduce sick days and vacation time. They even cancelled the annual barbecue.
"Our workers came up with the ideas to save their fellow workers' jobs, it's as simple as that," Levy said.
And when all the contributions and all the givebacks were added up, the layoff list shrunk from 600 to just 70. Ada Azotam was safe.
"A hundred percent, I'm not worried about my job," Azotam said.
"Nobody wants their friends and colleagues to be laid off and everyone is willing to give a little to make that happen," Levy said. "Why doesn't this happen more often in America?"
It could. Levy has heard from several companies interested in his prescription for easing the pain of bad times.
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See all 21 CommentsThe only problem, there will have to be more cuts in the future and something will have to give. Health care costs will soar when, and if, legislation is implemented stating otherwise. Likewise, pharmaceutical and insurers will continue to raise cost until they have to knock it off. Because once legislation is passed they will have some type of control mechanisms. But until then, they will continue to reap huge benefits while they can.
Sign me: Been there, done that and I know from experience.
Posted by tbbaot at 3:03 AM : May 29, 2009
First of all did you even read this story it was people coming together to help those that were worst off. BIg business is not like that it is always make a profit at the expense of others. Like banks that never would allow their exec't to take a pay cut and save jobs. Remeber Wells Fargo, how about insurance companies not taking there bonuses. Remember AIG they brought this mess upon us. Heck one exec wrote a letter telling every one how he felt that his CEO didn't stick up for him (AIG).
No this is not proof beyound any reasonalble doubt this is a group of people who gave money to save another group of people who were poor. Doctors gave to save jobs for food service.
Get your facts straight and no you can't convince me that facism works better than humans.
Posted by tbbaot at 3:03 AM : May 29, 2009
This is a single example, albeit an excellent one. That being said, it does not mean that all of the private sector is so equipped. 'Always' is a mighty big word. 'Always' includes those insurance companies that take everyone's money and then refuse to pay for damages to their homes or pay for a hospital bill when they are ill. 'Always' also includes those banks that are now holding onto our billions and still finding ways to jerk us around and charge us more and more in 'fees' and 'interest' and yet do not find ways to release any of the billions that were supposed to help get credit flowing again. 'Always' includes all the examples like these where the private sector has taken advantage of the consumer and left him/her high and dry and still gouging them for more of the money they have already wrung from them.
Posted by u-r-right at 4:53 PM : May 28, 2009
Sounds good. Of course to prevent more jobs from being outsourced to other countries, Americans would have lower their income to $10 day, which is about what they make overseas. Anybody up for it?
Posted by incog-nito at 7:26 PM : May 28, 2009
So true. We need to go further than this and find ways to stop corporate and government leaders from sending us to hell in a handbasket with outsourcing and this globalization nonsense. Unless they are willing to instantly lower prices of everything else to match a $10 per hour salary so we can compete fairly with the rest of the world.
Of course these workers should be commended for saving the jobs of those who needed them most. Bur this must not end here.
The high pay scale administrators gave bigger dollar amounts which they could do since they are the pwer in the "company" which is the hopital.
Others gave up pieces of their future (401K plans.) Delayed raises they had earned.
And the grateful little folks at the bottom of the line at will keep working at their minimumwage AND DONG MORE WORK to make up for the 70 jobs given up by the poor folks who are to be fired despite these efforts.
"Workers of the world unite!"
That was a slogan worth remembering. If we do n ot want socialism or communism to take hold here, we had better wake up to the usury of the Corporate "devils" who drive limos to Congress and brag that at least they did not fly in luxury company jets!
Posted by u-r-right at 4:53 PM : May 28, 2009
Sounds good. Of course to prevent more jobs from being outsourced to other countries, Americans would have lower their income to $10 day, which is about what they make overseas. Anybody up for it?
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Yet government continues to grow....
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