NORTH ADAMS, Mass. — Northern Berkshire Healthcare has approached the registered nurses at North Adams Regional Hospital to reopen their contract to negotiate changes in an effort to save $465,000 health-care officials say is necessary to avoid layoffs.
The nurses, represented by the Massachusetts Nurses Association voted on Jan. 2 to reject the request, citing the late date on which the hospital provided them a proposal.
The health-care system has been struggling for several years to overcome financial losses. While its bond rating was boosted earlier this year and it ended 2007 barely in the black, officials say the financial crisis and decreasing revenues are putting in a bind.
The last two years, the hospital has been dependent upon a $4 million grant given to community health providers; applications for that grant were due in mid-December. The health-care system is also trying to cut costs by divesting itself of Sweetwood Retirement Care Community.
It recently purchased the former Northern Berkshire Family Practice with hopes of expanding the number of general practitioners in the area through federal grants.
NBH is trying to cut $4.5 million from its budget.
Below are the statements from both the MNA and NBH in full. They have been edited only for style, spelling and grammar.
Nurses Won't Be Rushed Into Concessions
'We are Dedicated to Working with the Hospital to Resolve their Financial Crisis'
The registered nurses of North Adams Regional Hospital voted today not to reopen negotiations on their collective bargaining agreement. "The hospital made it clear that they want to rush these negotiations and the only solutions they have come up with are severe concessions," said bargaining unit Chairwoman Ruth O'Hearn, a registered nurse.
The hospital raised the possibility of reopening negotiations in early November and then for the next six weeks said nothing. On Dec. 22, management informed the Massachusetts Nurses Association bargaining unit that they needed to know by Jan. 2, 2009, if the nurses would participate in concession negotiations, which must be completed within two weeks.
The nurses did not receive a concession proposal until Wednesday, Dec. 24. Obviously, there were logistical problems with two major holidays in this period and many nurses are out of town or on vacation. But, according to O'Hearn, there are more serious problems. "First we didn't get their proposals until Dec. 24 and they are offering very little time to discuss and review these concession demands with our members," she said. "If the hospital was aware of possible financial problems almost two months ago, why wouldn't they have offered to sit down with us at that point?"
The proposal the hospital put forward includes cutting a previously negotiated pay raise scheduled for April 1 and troublesome language changes on overtime and differentials that the nurses have gained over many years of hard-fought contract negotiations.
"We continue to be dedicated to providing the highest quality care to our patients and doing our part at the bedside. We are also dedicated to the hospital and want to see its continued fiscal viability. We live and work in this community. This is our hospital, but we will not be threatened and pushed by management. We are dedicated to working with the hospital to resolve their financial crisis," said O'Hearn.
For the original release posted on the MNA Web site, click here.
Massachusetts Nurses Association Declines to Open NARH Contract
The community trustees and leaders of Northern Berkshire Healthcare had been hopeful that the Massachusetts Nurse Association would work together with them to meet twin goals: responding to the economic crisis and preserving jobs.
We were disappointed to learn that MNA members voted down our request to open their contract. Northern Berkshire Healthcare proposed contract changes that would have helped the hospital save $467,000 without implementing a layoff.
North Adams Regional Hospital is among the 74 percent of hospitals nationwide, according to one survey, that have acted in response to the crisis state of the economy. Like other hospitals surveyed, NARH is affected by:
* Reductions in Medicaid payments. * A decline in the value of pension investments. This will require NBH to pay an additional $1.2 million to cover pensions promised to employees and retirees. * Decreasing numbers of admissions as more Americans delay care either for fear of losing their jobs because of absence or a desire to save money in the face of current and anticipated economic challenges. * Fewer patients seeking elective procedures, and therefore lower revenue. * Increasing numbers of uninsured patients.
Given these challenges, NBH has been working on a plan to reduce its expense budget by $4.5 million.
The request to open the MNA contract was one part of that plan. The proposal to save more than $460,000 while keeping people employed included requests such as paying for overtime after 40 hours worked. This is consistent with federal labor law for individuals who receive weekly paychecks. The MNA contract requires overtime both after 8 and 40 hours, in excess of federal requirements.
Another contract change proposed would allow the hospital to use part-time staff first and then, if necessary, per diem staff to replace hours for nurses who are sick or on vacation. This change would avoid expensive overtime pay.
Following the principles of shared sacrifice and job preservation, NBH has already identified more than $3 million in savings. The savings include:
* Freezing open positions for a savings of $1 million. * The executive management team agreeing to forego any merit pay increases, while merit increases for other managers and non-union employees were reduced from 4 percent to 2 percent. * Reducing travel and education costs and trimming supply budgets.
The value of the contract changes NBH sought represents only 10 percent of the $4.5 million savings goal. The cost of MNA wages and benefits totals 18 percent of the hospital's budget.
The changes that will be implemented and those proposed to the MNA are needed to reduce operating costs to be more consistent with other small health-care organizations that receive the majority of payments for services provided to patients from public funding sources such as Medicare and Medicaid.
Reimbursement from these public sources generally does not cover the cost of the care provided. And, at NARH, more than 60 percent of reimbursement comes from these sources.
Further, as an organization committed to serving all of those who live in our community who have emergent needs, we provide care irrespective of an individual's ability to pay. As the economy has weakened, more patients have been receiving care for free.
Given these realities, we must assure that our pay and benefit practices are fair and competitive while eliminating excessive benefits.
"We are proud of the high-quality staff who work throughout the NBH family," said Richard Palmisano, president and CEO of NBH and a registered nurse. "We will assure that our staff receives competitive wages and benefits. Unfortunately, legacy costs from old contracts cannot be maintained into the future."
He added, "We remain hopeful that MNA members will reconsider when the full magnitude of the repercussions of their decision not to negotiate are known."
NBH statement released by Dianne M. Cutillo, vice president of external affairs
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How come the nurses have to take the hit. Why don't the hospital's over payed brass take a hit. Eliminate some for there jobs and take away the cars that they use, that the hospital provides to them for personal use. The hospital is just like any other big business, to many bosses and not enough Indians. So hit the people were it hurts right in the wallet. Stand tall and stand your ground together, don't give in to them. Because if you do they will take away more and more.
I'm sure other employees will take their share of the hits as well as the nurses' share. The nurses aren't the only ones who deal with patients. There are ancillary services as well.
The union said their wasn't enough time to really deliberate this because of the holidays and nurses being off but the union was able to vote down re-opening the contracts...how many nurses voted?
in these tough fiscal times the hospital has not
demonstrated wise spending....their recent acquisition of northern berkshire family practice
and their inability to keep a full census at either sweetbrook or sweet wood are two such wxamples. to think the nurses would give up wages after they already gave up their pensions is asking way too much.
This vote by the MNA is despicable. The hospital has been able to find more than three million dollars without asking anything of the union. I feel that the entire process has been open, the hospital asked everyone to participate and even posted their progress for everyone to see. The MNA thumbs their nose at all other hospital employees refusing to give up anything (just like the auto makers who are on the brink of bankrupcy). Do they really care about having a viable hospital in the community? It's clear that the MNA doesn't care about saving jobs at all!
why does anyone have to 'take a hit', has anyone been following the news for the last 6 months? The world is in an economic recession. I'd rather lose my raise then lose my job, the lesser of two evils.
The hospital has managed to purchased Northern Berkshire Family Practice as well as continue major renovations of the entire hospital (3rd North is currently being completely remodeled) as well as the addition of a brand new medication system but they can't afford to stay afloat?
The nurses have already taken a hit with their pension, now they are expected to give up their raises and overtime pay.
Any benefits the nurses received in their contracts have been hard earned. Everyday I see a devoted group of nurses who work tirelessly for the good of their patients. They don't take time for breaks, sometimes manage to get 5 minutes for a meal that they are docked 1/2 hour for and then are hounded to finish their shift on time because overtime will not be approved.
The nurses have given too much already, they shouldn't be responsible for the hospital's out of control spending.
I'm going to assume that you haven't been aware of the current financial climate of the entire United States (at least I can only hope that you are ignorant out of lack of knowledge). All hospitals are facing the same financial woes that NBH is facing. The stock market has presented a number of problems for all businesses (and YES, the hospital is a business...I know this may come as a shock to you). NBH has been very fortunate to have the opportunity to purchase Northern Berkshire Family Practice. With a shortage of primary care providers, the hospital's ability to secure PCPs for the community is crucial to the health and wellness of all of us (nurses, non nurses, whoever!). In addition, if renovations weren't made to NARH, how could they possibly generate revenue if noone wanted to visit a less than pleasant facility??!! If you own a home, it would make sense to build equity into it in the event that you wanted to benefit financially from it, right?
I agree that nurses, doctors, ancillary providers and every other department within NBH deserve the best. But it seems to present a sad notion of civic disengagement when we are looking to protect some jobs and not looking for the good of all employees. Maybe Concerned would be willing to volunteer at NBH...I'm sure they'll need some free labor after they are forced to lay off staff because of the recent MNA decision.
Yes, nurses are the backbone of any hospital. But to act as if they are not well paid is a farce. Those at the higher end of the pay scale, with the most seniority, make upwards of $100,000 or more each year. The ones who will be laid off are those at the lower end, who are trying to build a nursing career and make ends meet. It's easy for the union leaders at NARH to be indignant - they won't lose their jobs when all is said and done, and they'll still make a lot more than the average North Adams or North Berkshire resident. A friend of mine works at the Wyndham Hotel/Resort at Jiminy Peak. Today they fired her entire department because of the economy. She has a college education and was struggling at $10 an hour to make ends meet, and is now unemployed. If you're in the MNA, try telling your sob stories about lost overtime to real people who have to lose their homes, cars, apartments while you're driving your Lexus or BMW.
Very well spoken for the greed establishment! I do agree however, I think nurses do deserve more, like the first spot in the unemployment line just so the whole moment of their new existence kicks in faster for them. I say shut that whole place down, your ridiculous propaganda doesn’t fool or scare anyone. Nurses serve one of countless functions that allow a hospital to operate. You people have a truly inflated ego thinking you are what keeps the place running
Final weekend to walk the grounds of Naumkeag and see the thousands of flowering bulbs. Timed tickets must be purchased in advance and will not be sold on-site.
'Big Fish'
Taconic High School, Pittsfield
May 8, 9, 14, 15,16. Times vary at 2 and 7 p.m.
The Taconic Theater department stages "Big Fish," a musical about son who goes on an adventure to find the truth about his father's wild and unbelievable stories.
'The Prom Musical'
Berkshire Community College
Showings Friday through Sunday
A small-town prom is getting too much attention when a student wants to bring her girlfriend as a date. A troupe of Broadway stars arrive in the conservative community out on a mission to help in this musical comedy.
Baby Animals
Hancock Shaker Village, Pittsfield
Time: 11 to 4, through May 10
A sure sign of spring is the arrival of baby animals at Hancock Shaker Village in Pittsfield. See lambs, piglets, calves, chicks and kids and enjoy events and activities throughout the Village, from daily talks about the farm and the Shakers to craft demonstrations to walks along the Farm & Forest Trail.
Admission is $8 to $20, free for children 12 and younger. More information here.
Friday
Night of Dreams Fundraising Gala: Berkshire Dream Center
Berkshire Hills Country Club, Pittsfield
Time: 6 to 9 p.m.
This annual gala is a major fundraiser for the nonprofit Berkshire Dream Center. Enjoy dinner, music, a silent auction, and more.
Mass Kids Lit Fest
Berkshire Athenaeum, Pittsfield
Time: 10:30 a.m.
Children's author Carol Munro will do a "Springtime Storks" storytime, based on a true story of resilience and love between two migrating birds. Children will have the chance to create their own stork hand puppets and learn more about storks.
Local historian and Historical Commission Chair Dustin Griffin will speak on the politics and leaders of Williamstown at the start of the Revolution. The museum is at 32 New Ashford Road.
Mount Greylock Regional School seventh-grader Scarlett Foley Sunday beat two opponents from Division 2 Longmeadow to capture the Western Mass Tennis Individuals Championship. click for more
Looking out at that scenery doesn't have to end when you go indoors with Marvin scenic doors, transforming any space by bringing the outdoors in.
click for more
Waste treatment plan supervisor Brad Furlon warned the Finance Committee last week to expect a future 500 percent increase in sludge disposal.
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