Hospital Staff Sacrifices To Save Jobs

When Layoffs Seemed Inevitable, Staff Banded Together To Cut Costs And Save Positions

(CBS)  The staff at Beth Israel Deaconess Medical Center in Boston made its name by caring for its patients, but these days they're caring for each other.

"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.

[John_Merritt]

I always liked the people from Boston. Especially the Yankee haters. It is reall heartwarming to hear of co-workers and friends sacrificing for their brother and sister. What a novel approach. Wall Street are you listening.

The 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.

[hawk46ec]

Where I work, the management let the Union choose between layoffs or cut back on hours worked, the Union chose to take reduced work hours so no one would be laid off.Well done ILA 1984, ASPA, Mobile, Al.

[k9insky]

You won't see Tenet Health Care upper management take pay cuts, that's hilarious.

[riddelup]

The fat they cut was the source of the problem.

[differnet]

Well, as long as those employees taking the cuts included the top managment and even the Board of Directors. Where I work, this year instead of having the BoD meeting in Florida, they came here. I have to wonder why it took a crisis of this magnitude for the BoD to cut their own "party?" Anyway, too often it's only the lower level people taking the cuts. This is a refreshing story. Contrast this with big business slashing staff, but the executives who keep their perks.

[mrs_trepidatious]

All employees should follow this example and take cuts in their pay so business can be more profitable.

[antoniof123]

Further proof that the private sector is always better equiped to solve problems than the federal government
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.

[YCantWeAllGetAlong]

It's almost like hearing about a Lifetime movie. People actually caring about one another, doing things to help their fellow man. Then, to actually report good news, well, I'm just flabbergasted really. [/sarcasm]

[gramto8]

Further proof that the private sector is always better equiped to solve problems than the federal government

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.

[tbbaot]

Further proof that the private sector is always better equiped to solve problems than the federal government

[u-r-right]

Encouraging story. This should be done everywhere.
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.

[ramos1129]

I own a small business with 38 employees and soon to add more. Everytime I have had a major problem, I have discussed it with my employees and somehow we come up with the best way to proceed. Levy is doing this as any good manager should. Kudos to him.

[brundage3]

NO It should NOT "be done everywhere."

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!

[incog-nito]

This is all very touching, but Americans would be better served by taking a look at how their collective real income actually decreased over the past few decades, while their cost of living, especially health care and education, continues to skyrocket. The jobs will continue to migrate overseas whether the economy recovers or not. Case in point: GM plans to import the cars they make in China and sell them here. No big deal, you say. Well, what that will do is force other "domestic" manufacturers to do the same in order to compete, leading to more job loss. It's a race to the bottom, and you will get to read a lot more touching stories like this one.

[valh1]

so everyone is playing nice...... for now.

[sjc_1]

We are in this together, it is not an I got mine, the heck with you.

[breadline1]

SO THOSE WHO COULD AFFORD TO GIVE DID, SO THOSE WHO COULDN'T COULD SURVIVE. IN AMERICAN BUSINESS, THAT HAS TO BE AN ALL TIME FIRST !

[incog-nito]

Encouraging story. This should be done everywhere.
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?

[payasyougo]

Hospital Staff Sacrifices To Save Jobs
----

Yet government continues to grow....

[txlakeside]

Amazing and heartwarming story of compassion, support and true brotherly love. I hope the intolerant, the bigots, the racist, the homophobic and those lieing about modern day GOV see what man can do when he actually cares about his fellow man! No lies about imaginary foes or moral judgements. Compassion and caring is not socialistic but rather the true meaning of being realistic and feeling the pain of others. This is not trickle down economics. It is paying it forward economics realizing the return on the investment is much more productive.