Issue link: https://beckershealthcare.uberflip.com/i/777561
29 CFO / FINANCE Mayo Clinic to Give Delayed Pay Raises in 2017 By Tamara Rosin R ochester, Minn.-based Mayo Clinic has disclosed it will imple- ment "salary adjustments" for its allied health staff, the Post Bulletin reports, though they won't immediately take effect. According to a memo from the health system in December, Mayo staff will see pay ranges increase by 2 percent. The increase would be "calculated by multiplying the new pay range maximum by 3 percent" for allied health staff at Mayo Clinic campuses in Arizona, Florida and Minnesota, as well as all shared services staff at Mayo Clinic Health System, which is part of Mayo Clinic. However, the pay adjustments won't kick in until Feb. 22 for Mayo staff at the Arizona, Florida and Minnesota campuses, and those at MCHS will be delayed until June 28. Mayo Clinic officials declined to confirm the pay increases outlined in the internal memo, but Mayo Clinic Vice President Bobbi Gostout and Chief Administrative Officer Mark Koch explained in a video how the delayed raises will "help ensure the affordability of this year's salary adjustment for Mayo Clinic Health System," according to the report. "Mayo Clinic's compensation program is competitive, and salary adjustments are made based on market trends and affordability," Mayo spokesperson Kelley Luckstein wrote in a response to inqui- ries about pay raises. "Mayo Clinic is committed to a compensa- tion and benefits program that supports the mission of Mayo Clinic. Salary increases allow us to continue to attract and retain the best employees and staff who make Mayo Clinic a destination for pro- viding hope and healing. Specific details about the program are not shared publicly." n Texas Hospital to File for Bankruptcy as Debt Mounts By Ayla Ellison N orth Texas Medical Center in Gainesville is taking drastic measures to keep its doors open. The 60-bed hospital, which is owned and oper- ated by the Gainesville Hospital District, is about $7 million in debt. With the hope of regaining its financial footing, North Texas Medical Center's board recently approved a partnership agree- ment with King of Prussia, Pa.-based Universal Health Services, according to a KXII news report. Under the agreement, Texoma Medical Center in Denison, Texas, which is owned by UHS, will lease all five buildings on North Texas Medical Center's campus and take over operations of the hospital, according to the report. Ramin Roufeh, MD, interim CEO of North Texas Medical Center, told KXII the hospital board has also decided to file for Chapter 9 bankruptcy — a bankruptcy proceeding that offers distressed municipalities protection from creditors while a repayment plan is negotiated. Hospital officials expect to finalize the UHS part- nership and file the bankruptcy petition in the next few months, according to the report. n UHS Loses 20% of Market Cap After BuzzFeed Investigative Report By Ayla Ellison K ing of Prussia, Pa.-based Universal Health Services' stock has plunged 20 percent since Dec. 7, when Buzz- Feed published an investigative story alleg- ing UHS' psychiatric hospitals put profits ahead of patients. BuzzFeed's story was the result of a yearlong BuzzFeed News investigation, which involved reviewing internal documents and conducting interviews with 175 current and former UHS staff and more than 120 patients, government investigators and other experts. e story al- leges UHS psychiatric hospitals kept patients longer than necessary and against their will to maximize reimbursement from insurers. e report also raised questions about the quality of care provided at the psychiatric hospitals. In a press release issued in response to the story, UHS denied the conclusions drawn by the reporter. UHS said the story "misses the mark in several important ways leading to an inaccurate portrayal of UHS's behav- ioral health operations." After the BuzzFeed story went live Dec. 7, UHS' stock tumbled 12 percent. Following a negative research report from Raymond James, UHS' stock fell an additional 7 per- cent Wednesday. According to MarketWatch, the Raymond James analyst said a letter from Sen. Chuck Grassley (R-Iowa) to HHS' Office of In- spector General requesting an update on the investigation into UHS takes "the po- litical risk to a more dangerous level" and "could invite more caution and/or red tape into the admissions process — either exter- nally or from self-policing." In his letter to the OIG, Sen. Grassley asked the agency to detail the steps it is taking to investigate UHS by Dec. 23. Regarding the BuzzFeed story, Sen. Grassley said, "e pattern of conduct described by the report paints a picture of greed and raises serious questions about patient safety." Since the investigative report was pub- lished, UHS' stock has fallen 20 percent, which has reduced the for-profit hospital operator's market value by $2.4 billion, ac- cording to BuzzFeed. n