On behalf of Dr. ----,
Good afternoon providers.
Let me begin by concurring that today’s town hall call with APP was not at all informative. I think the best solution is to hold a call ourselves amongst the group. We can set that up for tomorrow. I know many may be on shift and unable to attend. You can get caught up by colleagues, or contact one of us locally to further address any outstanding questions. Your site medical director is your best place to start. I will lay out the basics here. Many, if not most, did not have an opportunity to ask questions on that call today. Personally, I have never seen or experienced a conference call where you had to dial in, wait for an operator to admit you to the meeting, and then get permission to ask a question on the call. So I don’t really know what to say about that set up. Except that it was ineffective.
Summary of cost reduction plan:
- Removal of scribes
- Matching shift times with volumes
- 10% reduction in pay, as a “deferral”
Items 1 and 2 are a normal reaction to markedly reduced patient volumes, we would be doing this no matter what the scenario was that got us into this situation. It is being fiscally responsible, given the nearly 50% reduction in patient volumes. We must be good stewards of the balance sheet.
Item 3 is proposed as a “deferral” because if and when volume returns, and hence collections return back towards normal, they will pay it back over time. So it is more like making a loan to the company, as opposed to simply cutting pay rates. A more palatable solution. I can make no certain promises that every dollar is eventually returned, as no one can predict if and when volume returns. They propose returning the money over the same time period as it was withheld. So if they withheld over 4 months, it would be returned over a similar trajectory. Not a lump sum.
I will also add that executive pay (in the home office), RMD and medical director stipends have all also been cut by 10% across the board. So your clinical leaders who manage, and also work clinically, in effect are taking a 20% cut to their comp.
This is a very “rough draft” of what is proposed. Your site medical directors are already enacting the staffing cuts, and updating the schedules. Please check Tangier, and speak with your scheduler to confirm your shift start times. The Scribe America contract has been globally terminated and coverage will end April 30th. There is talk of potentially bringing back some scribe coverage in a “pay to play” type model, whereby providers desiring a scribe can fund it from their payroll. More discussion and clarification is needed on this item.
Let me end by saying that we are making every attempt to
preserve jobs in this difficult situation. You cannot open a web browser or read a news feed without seeing how many companies are laying off millions of workers in every industry. Medicine is not immune. Other groups are enacting the same measures as we are to right-size the coverage, and prepare for the return to normalcy as quickly as possible. Many of the contract mgmt. groups are going much farther, and have furloughed APC’s, eliminated scribes, cut all bonuses and RVU pay, and so forth. Many small to medium sized ER practices will fold due to financial insolvency. Ditto likely for the private FSED space. It is simply too long to muster along with no cash flow when you have rents to pay, staff to employ, benefits to fund, and so on.
Keep an eye out for a scheduled system call. I will work to set that up. Your site medical directors are also well prepared to address your questions and concerns over the situation, so please confer with them as well to ensure you understand the changes.