Cutback Clarifications from the Top

Here's more information from the executive team at OHSU:


As a member of the OSHU Leadership Team, you help implement Vision 2020 and shape the culture of OHSU. Please share this message with your staff, as appropriate.

OHSU Leadership Team members:

Though there are some signs that the worst of the global economic downturn has passed, its impacts will likely be felt at least through FY10. Many of the actions OHSU took to address the downturn must be maintained in order to continue our progress towards financial sustainability. To that end, I'm writing with reminders and clarifications on several issues as you finish budgeting and begin preparations for FY10. Please share this with your staff, as appropriate.

Hiring, salary, and one-time payments freezes. The hiring, salary and one-time payments freezes instituted in late 2008 will remain in effect in FY10. Clarifications include:
• Salaries from Grants. The freeze does apply to salaries paid from grants, in accord with Federal Cost Accounting Standards. It applies to bonuses, annual increases and merit increases, and applies to faculty and others paid from federal grants (except postdocs, noted below).
• Variable Z Productivity Component. The freeze does not pertain to the variable Z productivity component of salary for clinical faculty. The variable Z component recognizes continued individual productivity, which remains essential.
• Postdoctoral Fellow Salaries. Postdoctoral fellows – trainees and researchers – should receive pay increases based on postdoc rank. Postdoctoral researchers and trainees must be paid the same way to comply with Federal Cost Accounting Standards and NIH regulations.
Benefits notice: healthcare. As announced in May, OHSU's contributions to employee healthcare benefits will be frozen at 2009 levels during 2010. Clarifications are as follows:
• What is the change? Employees who enroll in health benefits through OHSU receive a monthly contribution from OHSU to help pay the cost of coverage they select. For calendar year 2010, OHSU's contribution amounts will be frozen at 2009 levels.
• Who does it apply to? This change affects all unclassified employees, including unclassified administrative, faculty and research employees. At the appropriate time, similar changes for ONA-represented and AFSCME-represented employees will be discussed.
• When is it effective? Calendar year 2010.
• Q&A available on the Staff News blog.
Benefits change: retirement. As announced in January, OHSU's retirement contributions to the University Pension Plan (UPP) are changing. Clarifications are as follows:
• What is the change? The contribution to the UPP Employer account will remain the same. The contribution to the Employee Account will change from 6% to 4%. This brings parity to the current levels of UPP and PERS contributions paid by OHSU.
• Who does it apply to? This change affects UPP participants who are faculty, research and unclassified administrative employees. At the appropriate time, similar changes for ONA-represented and AFSCME-represented employees will be discussed.
• When is it effective? The changes were effective Jan. 1, 2009, for unclassified new hires, and July 1, 2009, for other unclassified employees who participate in the UPP.
• Q&A available on the Staff News blog.
Clarification: pay cuts and furloughs. The Executive Leadership Team has received a number of inquiries asking whether we considered pursuing an enterprise-wide strategy of pay cuts and/or furloughs. Our approach during this economic downturn has been to provide overall reduction targets to individual units. Unit leaders have broad latitude in achieving those reductions. Furloughs should not be used for unclassified employees, because of the wage and hour implications. Managers considering furloughs for other employees should work with their Human Resources Business Partner. In general, most managers are choosing to make reductions in a way that does not impact the take-home pay of employees.

Thank you for your attention to these issues. If you have further questions, please feel free to direct them to Rick Bentzinger, Vice President of Human Resources.

Steve Stadum
Executive Vice President

Found Lives - a Theatrical Reading

Hi everyone,

Dr. Wilson has organized a theatrical reading called "Found Lives" - about people living with schizophrenia. It will be held at the OHSU Old Library Auditorium on two evenings in June - see the flyer, above. Please distribute this information far and wide - it's free and open to everyone.

Salaries, updated communication from Dean's office

We received this communication today from the Dean's office:

Dear Chairs and Department Administrators:

This note provides answers to two questions we have received about the OHSU-wide salary freeze.

· Does the freeze apply to postdoctoral fellows (both trainees and researchers)? No. All postdoctoral fellows should receive increases in pay commensurate with NIH guidelines, based on the rank of the postdoc. The reason for this policy is that the NIH mandates increases for postdocs paid from training grants and all postdoctoral researchers must be paid the same way. Federal Cost Accounting Standards require that two groups doing the same work must be treated similarly, even if they are not being paid from a training grant. While HR distinguishes between postdoctoral researchers and trainees, in this situation, all postdocs may receive pay increases.

·
Does the freeze apply to salaries paid from grants? Yes. There is a freeze on salary raises regardless of the source of funds. The freeze applies to bonuses, annual increases and merit increases, and applies to faculty and others paid from federal grants (except for postdocs as indicated above). Federal Cost Accounting Standards and NIH regulations prevent us from raising faculty salaries on grants when there is a general freeze on increases to salary.

If you have questions, please contact Irene Barhyte or Elaine Rowzee.

Regards,

Mark Richardson

Although faculty attendance was excellent at today's faculty meeting some could not be present and I'd like to present a brief summary of our discussions. Next year's budget will be more difficult to meet than at any time in the department's history and will require significant changes in the department. The slide below tells the story of our fiscal problems:

Consistent decreases in our SOM funding and dramatic increases in Overhead Cost Allocation charges have resulted in a roughly $1M budget loss for next year. We plan to deal with this in the following way:

1. All non-bargaining unit employees of the department will have a 4% pay cut on their 2008 salary base. Clinical performance pay (Z2) will not be cut.

2. The psychiatry LLC for billing will be closed. Its responsibilities will be tranferred to UMG. Preauthorization functions will stay in the department.

3. Two managerial positions will be eliminated.

4. We will not be able to restore the physician complement on 1 NW to 3 physicians and will run the unit with two psychiatrists.

5. The child fellowship program will be reduced from 3 to 2 stipends/year

6. We will cancel plans to hire an additional geropsychiatrist.

7. There will be some losses in faculty FTE. I will speak personally with those affected.

These are drastic changes and the discussion reflect that. I welcome your questions and comments on this blog and will try to reply in a timely fashion.

George A. Keepers, M.D., Chair