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September 19, 2008

Financial Fallout Coming to Healthcare Too?

Dollararrow72x451 Stocks, bonds, and savings -- those are the 3 big words being used by CNN News analysts today. The Stock Market plunged into a downward spiral earlier this week. Wall Street executives’ actions are being evaluated, as are their salaries. I must admit that I went to the bank earlier today just to see if all my financial assets were still there. They were!

Is the same fallout going to occur with healthcare institutions? The highest paid Hospital CEO in New York City is Herbert Pardes , with a yearly salary of 5.4 million dollars as of 2006, according to New York Presbyterian Medical Center. Next come the other major institutional CEOs at Mount Sinai and Sloan-Kettering.

Is the same financial fallout going to occur within the healthcare system as investments in new patient care centers, equipment, and personnel are made?

Anyone frightened about the events of this week? Will our jobs be affected?

September 19, 2008 in Beka | Permalink


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Posted by: KN | Mar 14, 2010 3:27:48 PM

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Posted by: Shazia | Jan 22, 2009 6:14:10 AM

How about this solution; make healthcare not-for-profit. Eliminate the profit motive, and put Care back into healthcare. Reduce the ridiculous salaries that high-level executives get (you know those employees who are slashing quality healthcare and patient safety and comfort with bedside cuts). Invest those profits that are going to disinterested investors into staffing and patient related expenditures. Create a link between the lowest paid employee's salary and the highest, neither increases or they all increase proportionatly. Eliminate the back-slapping culture that results in Jeb Bush making 39 thousand dollars a day as a board member of a hospital group, rather than investing in growing and developing internal employees to lead and manage professionally. For those who think, people won't do this job if there isn't a profit motive, ask yourself, who wouldn't do it, the cna's who work for pennies, the transporters who work for less, the nurses who are losing hours already? The only ones who might not do it are the people who only got into the field for the money in the first place, you know - the ones who take their big bonuses and cut your hours, slash your benefits, and try to make you feel guilty that the hospital isn't making money, the ones who don't owe the patients or staff any loyalty, they owe their loyalty to stock holders(they are legally mandated to do so). I'm not suggesting socialized medicine, just not-for-profit. After all, we actually already offer socially funded healthcare through our emergency departments - it's just more expensive and less effective. And socialized medicine seems to improve outcomes. Just look at statistics comparing US to other industrialized nations, we are 19th when it comes to preventing premature deaths from conditions such as heart attacks; the US comes in at 65 out of 100 on a scorecard judging 37 categorties according to a report released by the Commonwealth Fund Foundation. Our healthcare costs more, delivers less and punishes loyal bedside staff. It's not the economic conditions that threaten healthcare jobs, it's self-interested greedy people making decisions for the welfare of investors, top execs and boardmembers, not patients or staff.

Posted by: Staff Nurse | Dec 5, 2008 4:33:07 PM

Yes, the Ceo and top administrators salary and benefits should be adjusted down. The reason is if they do not show up for work, it will not directly affect patient care. NO CEO should be making millions of dollars in salary and benefits unless they can perform miracles!! We have just experienced a down-sizing at the organization where I am employed. 72 employees lost their jobs. But all the top managers and directors stil have a job. They are not going to vote themselves "off the island"

Posted by: cheryl wheeler | Oct 28, 2008 4:14:03 PM

I totally agree. This has been an ongoing problem that CEO's & VP's make a healthy salary and they get bonus's too. Big enough bonus's that they could really give their staff a nice $$$$ christmas gift instead of a cookbook or a turkey that cost them less than $10.
Something should be done with salaries these days. The people who are putting in the long hours and breaking their backs, will end up retiring with maybe a sm pension, 403b or 401k that isn't worth anything and if they aren't 65 they won't have insurance. And they better not be sick for an extended amount of time, because then you will have to sell everything you own to pay your medical bills. Sad very sad.
Will there be a fallout in the medical field, most definetly, with people loosing their jobs and benefits who is going to pay their medical expenses? It will turn very ugly! If they can't pay their bill and the Hospital has to eat that cost where do you think the buck is going to stop.....in your paycheck. It has already started, people aren't getting raises, overtime has been eliminated, units are understaffed.Positions have been eliminated. The people who do have a job are working through their lunch just to get done on time.
Stress levels are very high in the work invironment. Something has to happen. And it needs to happen from the top....like cut some top salaries. I don't mean people who work the floors and have longevity. The high ups.

Posted by: Fran | Oct 24, 2008 9:13:13 PM

I think that it's about time to think of how to provide the best care in a more cost effective way.This must be a multidisciplinary force to prevent the possible financial fallout of Health care .

Posted by: Zenith T. Ilagan | Oct 16, 2008 2:38:02 AM

There may be some financial adjustments in the health care world, but unlike other industries there will always be a demand. Health care consumers really don't have a choice - if you are sick then you need to see a doctor.

Posted by: Cheap Scubs | Oct 9, 2008 11:18:20 PM

I believe that the CEO's and VP's make far to muchin conparison of the total profession. I also believe that their salaries should be based on the bottom line. How effective are they in keeping managerial costs down and putting the money to work on the floors where the care is needed. I also believe that we need to place higher standards for those individuals that work with patients.

Posted by: Mary Seibt | Sep 25, 2008 4:27:47 PM

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