HPA 460 Mini Capstone-2

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Pennsylvania State University *

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897

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Medicine

Date

Apr 3, 2024

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Appendix sacrifice his own skin to protect us. Ill ask him to put his other projects on hold, so yowll have him pretty much full-time for the next few days. He's a smart guy and knows how to get information. “T think we all can agrec that we want evidence-based answers, and not emotional responses—no offense intended, Melissa. I understand your concerns and we'll act according to what you can find out. Pleasc send your response to me by the end of the day next Tuesday. Pleasc keep it under three pages.” Reference Stager, D. O, D. 1. Auerbach, and P I. Bucrhaus. 2012, “Registered Nurse Labor Supply and the Recssion—Are We in a Bubble?” New England Journal of Medi- cine 366 (16): 1463-65. wwwncjm.org/doi/full/10.1036/NETMp1200641 Case 5: A Living Wage Methodist Hospital, a 400-bed acute care hospital, is located in a low-income community in a city in the Southwest. Like other urban hospitals, Methodist Hospital serves a large number of Medicaid patients. As a result of national legislation, the number of uninsured patients has decreased over the last three years, but the hospital remains in a chronic state of financial distress. Method- ist Hospital was recently acquired by a hospital system. The hospical has just experienced a rather bad six months. The prob- lems started when a supervisor in the housekeeping department repeatedly violated hospital policy and federal law by tampering with time shects for several employees. Three Latino women employees brought this violation to the attention of the local NBC affiliate. The story went viral, and within 48 hours it had been broadcast on CNN and MSNBC and published in USA Today. The hospital’s dircctor of public relations apologized for this “cleri cal error” and the supervisor’s misunderstanding about procedures. The employces reccived back compensation for the mistake and were each given a gift certificate to a local restaurant. The supervisor reccived a reprimand but continued to work at the hospital. After the incident was resolved, several other employees came forward with similar complaints, indicating that they were afraid at the time to speak up. An internal investigation of the situation continues. Less than a month later, Deborah, who carns $98,100 per year as director of information technology at Methodist Hospital, was arrested on a DUI charge after she struck and injured a mother and child at a crosswalk. The injured mother, who was a dictary aide at Methodist carning $8.50 per hour, was on her way home after picking up her child from daycare. This arrest was Deborah’s third in five years for DU, and she had in fact lost her
: driver’s license. Her husband, a prominent orthopedic surgeon at Method v ist, worked back channels with the board and the local police to reduce the 4 charges and keep her on staffat the hospital. The hospital agreed to keep her on staff but referred her to an cmployee assistance program A weck later, the Wall Street Journal published a story about wage dis- crepancics in a sample of inner-city hospitals throughout the United Statcs The story was based on a study conducted by a team of Wall Sereet Journal reporters working with staff at the Urban Instirute. Of 50 hospitals studicd: Methodist Hospital was cited as having one of the greatest wage disparitics berween white and minority employees (at Methodist Hospitals, minoritics were mostly African Americans and Latinos). After controlling for job title and job responsibilites, tenure in the organization, cxperience, age, and other factors, the reporters found systematic racial bias in wages over the past ten years. Methodist Hospital, in fact, was one of only six hospitals studied exhibiting such profligate bias. Following these incidents, the hospital continued to be a center of controversy, with repeated stories in the local newspaper, television, and social media. In the midst of this uproar, the hospital board met with the senior management team to discuss how the hospital should repair the damage caused by these incidents. A community-hospital relations team, composed of hospital staff, the vice president of HR, the director of public relations, and several community leaders, was formed. After three wecks, the team issued its report, which recommended several community outreach i initiatives, diversity training for hospital employees, and the development of a swonger policy outlining expectations of hospital staff outside of the work setting. Among the team’s additional recommendations was something new 0 the hospital, an initiative that the team highlighted as a way to get the community’s attention and send a message that the hospital was truly com mitted to improving it relationship with the community and contributing to the city’s economic development. The report proposed that the hospital adopt a iving wage policy for its B employees. No other living wage policy was in placc in the city. In fact, the 4 hospital would be the largest organization in the state to adopt any form of living wage policy. The policy would likely provide a substantial benefi to the lowest-paid employccs of the hospital, who were disproportionately African 4 American and Latino. i After reviewing the report, the senior management team and board were very supportive of most of the recommendations but hesitated on the living wage policy. Becausc of the policy’s financial implications and the uncertainty about the precise meaning of a living wage, discussion of the proposed living wage policy took up most of the meeting, The hospital president had litele familiarity with the idca of a living wage. He had heard about the concept but had no idea what its financial
impact would be or how it would be implemented. Tn concept, he agreed < that paying people more would be 2 popular action. But what would be the kecp financial impact, and would it cause a ripple effect, increasing wages through- out the hospital, perhaps resulting in having to decrease staffing levels? He asked the vice president of finance and the vice president of HR to develop a wo- to three-page summary report addressing the following questions i « What is the definition of “living wage”? « Has a living wage policy has been put into place in any jurisdictions? If s0, what was the impetus for the policy? What have been the repercussions, both positive and negative? « How is a living wage calculated? Does it vary by location, family size, and other factors? Are there different models or approaches to a living wage policy? * What is the impact of a living wage policy on employees in the organization? Specifically, docs a living wage policy raise the wages only for people who arc currently paid below the living wage level2 1f s0, how is the policy likely to affect internal cquity within the organization? Alternatively, does implementing living wage policy bump up everyone’s wages? * In comparison with other hospitals in the city, Methodist Hospical’s pay structure is right in the middle, and the hospital has been pretey successful in attracting and retaining employees. How would the ‘hospital reconcile a living wage policy with its current compensation T system, which is driven mostly by market factors? o= * What cvidence is available on the financial impact of living wage policy on organizations? Does such a policy have ancillary benefits that nbunng can be monetized, such as reduced turnover? In a private conversation with the director of public relations, the hos- a pital president said, “If we do something with this living wage idca, we've got § to make it a very big deal. We'll need a press release and a press conference x attended by represcntatives from the National Association for the Advance- ment of Colored People and the League of United Latin American Citizens. We've got to make it look like a very sincere effort, which of course it is.” and Case 6: Same-Sex Marriage and Human Resources Policy “Every morning when I turn on NPR T panic. It scems that every day some 2 e court is cither tossing out or upholding a state’s same-sex marriage ban. How . in the world do we set employment policies in this cnvironment? Our system |
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