Employees November 01, 2008
Employees Achieve Almost-Record PIP Results for 2008 – Payout on the Way
For the second year, employees had the opportunity to earn a 3 percent Performance Incentive Plan (PIP) payout. YNHH employees achieved near perfection with a 2.95 percent overall score.
By focusing on productivity, reducing waste and keeping patients safe and comfortable, eligible employees nearly attained the maximum PIP payout. Percentages may vary depending on achievement of departmental goals. To be eligible for a PIP award, employees must have worked at least 1,000 hours between September 30, 2007, and September 27, 2008, and be active as of December 4. PIP payout checks are scheduled to be distributed on December 4.
“This is a significant achievement and represents great effort on the part of employees,” said Michael Dimenstein, director, Compensation and Benefits. “Even with the addition of three new PIP categories this year – discharges by 11 a.m., cleanliness and hand hygiene – employees met, and in most cases, exceeded hospital goals.”
Financial results
The combined financial goal has three measures: net operating income, productivity and percentage of discharges by 11 a.m. Financial results account for 45 percent of PIP.
Net operating income – patient revenue minus expenses – for FY08 was $49.1 million, more than double the maximum goal of $21.4 million.
Productivity is measured by two components: cost-per-day, the average cost for a patient’s day in the hospital, and cost-per-patient discharge, the average cost for a patient’s total hospital stay.
For FY08, the cost-per-day came in at $2,521, missing the maximum goal by just $2. Cost-per-discharge, coming in at $9,814, also narrowly missed the maximum target.
“Our financial performance was very strong throughout 2008,” said James Staten, senior vice president, Finance. “Even with the challenges brought on by increased levels of patient admissions and clinical activity, employees have done an incredible job of managing expenses and making revenue cycle improvements.”
Percentage of discharges by 11 a.m. was a new PIP measure for 2008. “This year, employees also focused on discharging clinically ready patients, whenever feasible, by 11 a.m., which allowed us to admit additional patients into the hospital,” added Staten.
The percentages of discharges by 11 a.m. this year was 17.35 percent, exceeding the maximum goal.
Patient satisfaction
The patient safety and satisfaction category, which accounts for 55 percent of PIP, has three measures: overall patient satisfaction, cleanliness and hand hygiene. For FY08, overall patient satisfaction weighed in at 86.2, exceeding the maximum goal of 85.
Cleanliness, a new patient satisfaction measure for 2008 that tracks patient’s impressions of the cleanliness of the hospital environment, came in at 83.5, also exceeding the maximum goal.
The hand hygiene measure is based on observations of employees sanitizing their hands before entering and upon leaving patient rooms. In its first year as a PIP measure, employees met the target of 85 percent for the year.
“Two thousand and eight was a demanding year and almost reaching this 3 percent goal is a major achievement,” added Dimenstein. “Employees stepped up, met the challenges and exceeded goals in most areas. Employees throughout the hospital should be extremely proud of
their achievements.”
Article originally appeared in the November 20, 2008 issue of the Bulletin employee newsletter (page 1)
http://www.ynhh.org/bulletin_archive/2008/112008_Bulletin.pdf
