Is Your CEO Willing To Have a Cut in Pay?

September 27th, 2009 by admin

Here are the 10 largest (by revenue) U.S. public companies where CEO pay cuts took place:

General Motors (reduced to $1)
Ford Motor (reduced by 30%)
Sears (reduced by $50K)
FedEx (reduced by 20%)
American Express (reduced by 10%)
Motorola (reduced by 25%)
Eaton (reduced by 6 weeks’ worth of pay)
Continental Airlines (reduced to $0 for Q3 and Q4 of 2008)
EMC (reduced by 15%)
Cummins (reduced by 10%)

In this economy, it may require a cut in pay to remain strong or have a business to survive. Are you or is your CEO willing to take a cut in pay?

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Medical Facilities Blaming Everyone Else For Their Woes

July 1st, 2009 by admin

Medical facilities are having layoffs and scrapping or delaying building projects and more closings and mergers are on the way, industry consultants predict.

They’ll get taken over by somebody else, if they need to exist, and if they don’t, they’ll just be shut down. Most endangered are rural hospitals and urban ones in areas with excess hospital beds and a lot of poor, uninsured patients.

Hospitals are reporting that their donations are down, patient visits are down and their profitable diagnostic procedures and elective surgeries have decreased as people with inadequate insurance delay care. But those patients are turning up later at ERs, seriously ill, making it tough for hospitals to lay off nurses and doctors.

The Oh Woe Is Me Problems– stingy reimbursements from commercial insurers (whom are trying to make a profit themselves), even-lower payments that generally don’t cover costs for Medicare and Medicaid patients, and high labor and technology costs. Medicare and Medicaid is set to pay close to the actual cost, not much if any profit for the procedure itself, nor the salary of upper management.

In the past few months, patients and insurers have been paying hospital bills more slowly. As a result, some think hospitals will start demanding up-front payments for elective procedures, which will lose patients.

When I worked on a lawsuit for the state of Indiana I had to prove that Medicaid was paying the appropriate dollar amount to providers. I took into account the salary of the work employees, automobiles, insurance or supplies used. Amazingly, when the salary of the owners, administrators, top management was not included the amount paid did make a profit for the service rendered.

As insurance changes the salaries of the top management for medical facilities will have to drastically change and also for insurance companies top management.

Few hospital are willing to have a true cost consultant come into their facility, because they know they will find a huge waste of money in many areas. Hospitals and other medical facilities are using the General Motors Model and not the Toyota model.

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