Cratter Posted October 25, 2013 Posted October 25, 2013 So Altru buys the south end hospital, announces plans for a massive new hospital, donates $10 million to UNDs Indoor Practice Facility, and now cuts some of the staffs pay by 20%. http://www.grandforksherald.com/event/article/id/276592/ Quote
Redneksioux Posted October 25, 2013 Posted October 25, 2013 Main reason is obamacare. It's going to hurt many medical facilities. Less staff will be asked to do more. Hospitals will be receiving reimbursement cuts for early re-admits for certain diagnosis. I understand it was common practice at altru to simply code a different primary dx in the past and they will no longer be able to do this. With that said altru knew this was coming so it should come as no surprise. The money was spent on the south end simply to ensure they wouldn't have competition in grand forks. 1 Quote
Cratter Posted October 25, 2013 Author Posted October 25, 2013 And I forgot they just built a new clinic in Devils Lake for $10 Million. Quote
smokey the cat Posted October 25, 2013 Posted October 25, 2013 Main reason is obamacare. It's going to hurt many medical facilities. Less staff will be asked to do more. Hospitals will be receiving reimbursement cuts for early re-admits for certain diagnosis. I understand it was common practice at altru to simply code a different primary dx in the past and they will no longer be able to do this. With that said altru knew this was coming so it should come as no surprise. The money was spent on the south end simply to ensure they wouldn't have competition in grand forks. BS. "Reisnour said because of federal budget sequestration cuts enacted by Congress, Altru had budgeted for a $300,000 drop in monthly Medicare reimbursements this year. But that reduction has actually been about a $1 million more than that a month, he said". This is what the teapublicans wanted and you blame it on Obama? Quote
Redneksioux Posted October 25, 2013 Posted October 25, 2013 BS. "Reisnour said because of federal budget sequestration cuts enacted by Congress, Altru had budgeted for a $300,000 drop in monthly Medicare reimbursements this year. But that reduction has actually been about a $1 million more than that a month, he said". This is what the teapublicans wanted and you blame it on Obama? Not blaming it on Obama. Quote
fightingsioux4life Posted October 25, 2013 Posted October 25, 2013 I smell a political thread drift in the air. I guess I have some trouble feeling sorry for Altru. They use their market monopoly to shut out any competition and now this happens to them. This is karma working its magic. 1 Quote
Redneksioux Posted October 25, 2013 Posted October 25, 2013 Could they be preparing for a sale? Quote
yzerman19 Posted October 25, 2013 Posted October 25, 2013 Altru will not sell. The Mayo affiliate partnership was designed to ensure independence in perpetuity. Healthcare economics are not like typical economics- competition does not lower costs, it raises them. Federal reimbursement is also dramatically cut if a community hospital ceases to be a sole community provider. That revenue to Altru is federally funded. Add a second hospital, that money goes to California or wherever else the feds decide to send it. Decisions are being made looking out the windshield. One result of the ACA is that access to capital has tightened up in the industry making financing options more limited. You have to be prepared for that to be the new normal. If Medicare reimbursement goes down, and access to capital tightens, and commercial insurers cut allowed amounts...result is less revenue and less cash than before. You don't stimulate demand in healthcare, so you have to tighten your belt. The senior staff decision to cut pay for the remainder of the year is simply an optics play- but a good one in my opinion- tough to justify higher comp for senior staff during a bad year Quote
yzerman19 Posted October 25, 2013 Posted October 25, 2013 This new normal is reality under the ACA. Rural hospitals that are too big to be "critical access" are going to get crushed from all sides. 1 Quote
dunder15 Posted October 25, 2013 Posted October 25, 2013 I see that Altru and the Herald forgot to mention that Altru is cutting everyone PTO by 10% Quote
yzerman19 Posted October 25, 2013 Posted October 25, 2013 Also, regarding the initial post, capital investment is always looked at differently than operating income decisions. 1 Quote
Cratter Posted October 25, 2013 Author Posted October 25, 2013 Is Sanford cutting pay too? What about Minot? Bismarck? Quote
BobIwabuchiFan Posted October 25, 2013 Posted October 25, 2013 BS. "Reisnour said because of federal budget sequestration cuts enacted by Congress, Altru had budgeted for a $300,000 drop in monthly Medicare reimbursements this year. But that reduction has actually been about a $1 million more than that a month, he said". This is what the teapublicans wanted and you blame it on Obama? BS...The sequestration was a device created by Jack Lew and the Obama administration as a way to force republicans to accept the debt ceiling raise...the bet that they would rather raise the debt ceiling than cut defense was a poorly played hand by O and Lew...Also, if you think O'care isn't going to impact the hospital's bottom line, then I have some pixie dust to sell you for a good deal. "On August 2, 2011, Congress passed the Budget Control Act (BCA), which raised the debt limit, cut $917 billion in federal spending over 10 years, and established the Joint Select Committee on Deficit Reduction (the “super committee”). The super committee was supposed to produce legislation by November 23, 2011 to further reduce spending by at least $1.5 trillion over 10 years. If the super committee failed to propose legislation reducing federal spending by the minimum amount, $1.2 trillion in automatic cuts would be divided equally between defense and various domestic spending programs. This sequestration process was intended to serve as a poison pill to force the committee to present a reasonable plan to Congress. Predictably, this less-than-super committee failed to even submit a proposal, meaning that when Congress failed to pass $1.2 trillion in cuts by the end of 2012, the automatic sequestration cuts kicked in on January 2, 2013." 2 Quote
Cratter Posted October 25, 2013 Author Posted October 25, 2013 Also, regarding the initial post, capital investment is always looked at differently than operating income decisions. If you can't plan and see that far ahead, If you don't have enough cash reserves, that you have to resort to cutting pay. You are doing a bad job. It's bad for publicity and workers moral and puts a black eye when needing to hire more in the future...major fail. If I work for a construction company and the boss is driving a new truck every year, bought a large new house, then work suddenly slows down but he has more bills to pay, and say "hey I need you to take a pay cut." Nothing was stopping altru from saving ten million dollars by not donating it. Quote
Cratter Posted October 25, 2013 Author Posted October 25, 2013 Obamacare; reimbursements; Medicare....Government shuts down so they have to cut wages..... Youd think forcing people to buy insurance would mean a busy hospital and more money coming in...but many are saying that won't be true.....defies all logic... Quote
MafiaMan Posted October 25, 2013 Posted October 25, 2013 BS. "Reisnour said because of federal budget sequestration cuts enacted by Congress. This is what the teapublicans wanted and you blame it on Obama? BS again. Go rewind the speech where Obama spoke out IN FAVOR of these automatic cuts taking place...before he decided to come out AGAINST them when they actually went into effect. And feel free to explain to me how a near 9 trillion dollar deficit under Bush is 'unpatriotic' but a near 17 trillion dollar deficit now is apparently a requirement for good government. EDITED 1 Quote
MafiaMan Posted October 25, 2013 Posted October 25, 2013 Youd think forcing people to buy insurance would mean a busy hospital and more money coming in...but many are saying that won't be true.....defies all logic... You're making the same assumption that Obama is - that Americans (and non-Americans for that matter) will prefer paying $1000 a month for health care coverage over a $700 a year penalty for NOT buying coverage. Quote
UNDBIZ Posted October 25, 2013 Posted October 25, 2013 BS again. Go rewind the speech where Obama spoke out IN FAVOR of these automatic cuts taking place...before he decided to come out AGAINST them when they actually went into effect. And feel free to explain to me how a near 9 trillion dollar deficit under Bush is 'unpatriotic' but a near 17 million dollar deficit now is apparently a requirement for good government. Hey if our deficit went from $9 trillion to $17 million, I'd say we're moving in the right direction. Unfortunately that hasn't happened. This is 2 active threads with politics now. Let's swing the conversation back to Altru-bashing. Quote
MafiaMan Posted October 25, 2013 Posted October 25, 2013 Hey if our deficit went from $9 trillion to $17 million, I'd say we're moving in the right direction. LOL...nice catch. Cue me kicking a kid off my computer so I can stop typing on my iPhone! Quote
smokey the cat Posted October 25, 2013 Posted October 25, 2013 You're making the same assumption that Obama is - that Americans (and non-Americans for that matter) will prefer paying $1000 a month for health care coverage over a $700 a year penalty for NOT buying coverage. For $300 more you get something. But for some it seems easier to spend $700 and get nothing. But they are making a point. Quote
smokey the cat Posted October 25, 2013 Posted October 25, 2013 BS again. Go rewind the speech where Obama spoke out IN FAVOR of these automatic cuts taking place...before he decided to come out AGAINST them when they actually went into effect. And feel free to explain to me how a near 9 trillion dollar deficit under Bush is 'unpatriotic' but a near 17 trillion dollar deficit now is apparently a requirement for good government. EDITED Actually Bush raised the debt from 5 trillion to 12 trillion and not a word from the right the whole time. So feel free to explain to me how Bush was patriotic for doing this. Over 2/3rds of the debt is on Republican presidents. And it was not a 9 trillion dollar deficit nor a 17 trillion dollar deficit. Furthermore Obama's deficit has been cut in half from the Bush deficit. 1 Quote
smokey the cat Posted October 25, 2013 Posted October 25, 2013 Not blaming it on Obama. Re-read your first sentence. Quote
MafiaMan Posted October 25, 2013 Posted October 25, 2013 Furthermore Obama's deficit has been cut in half from the Bush deficit. Where did you read THAT? MSDNC.com ("Lean Forward") or The Huffington Post? Quote
smokey the cat Posted October 25, 2013 Posted October 25, 2013 Where did you read THAT? MSDNC.com ("Lean Forward") or The Huffington Post? All over the news. http://www.theatlant...ceiling/242484/ Better than FauxBendOver and thank us while we give it to you news. Quote
yzerman19 Posted October 25, 2013 Posted October 25, 2013 If you can't plan and see that far ahead, If you don't have enough cash reserves, that you have to resort to cutting pay. You are doing a bad job. It's bad for publicity and workers moral and puts a black eye when needing to hire more in the future...major fail. If I work for a construction company and the boss is driving a new truck every year, bought a large new house, then work suddenly slows down but he has more bills to pay, and say "hey I need you to take a pay cut." Nothing was stopping altru from saving ten million dollars by not donating it. Only senior staff is taking a paycut. They are not in trouble financially. They are missing a budget target. If I have a million in savings, but my monthly expenses are running a thousand bucks in the red, do I stop investing? Do I pull out of savings? No, I'd rather do things like spend less on beer. Read the bios of senior staff- masters degrees and twenty plus years in the business- they get it. Quote
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