MUSC to handle cuts with furloughsNearly $17M shortfall brings loss of 4 days' pay By Jill Coley (Contact)
The Post and Courier
Tuesday, November 25, 2008
The Medical University of South Carolina said Monday that 1,200 of its 5,000 employees will be furloughed for four days to help absorb the nearly $17 million shortfall in state appropriations. 
MUSC President Ray Greenberg is taking an eight-day voluntary furlough. A "handful" of employees will be laid off in departments that could not make reductions any other way, MUSC President Ray Greenberg said. The number of positions terminated will be about 10, Greenberg indicated, and the majority of those will be temporary employees. More details will be announced about the layoffs after approval by state officials in Columbia, which will take about a month, he said. The terminations are expected to save $329,957. Last month, state lawmakers cropped a total of $488 million from the state's $7 billion spending plan for 2008-09, including a $123 million cut to public universities and technical colleges. The most recent cuts brought the cumulative state funding reduction to MUSC to $16.8 million. Earlier this month, Clemson University announced that each employee would have to take off five unpaid days to help pay for $25 million in budget cuts. The University of South Carolina hasn't announced its plans for dealing with a $37 million budget reduction. "There has been a tremendous amount of anxiety on campus about how we were going to deal with this," said Greenberg, who is taking an eight-day voluntary furlough. Previous storiesHospital patients pay to park downtown, published 11/18/08 MUSC braces for budget storm; University, hospital freeze hiring, cut overtime and look for other ways to save, published 10/16/08 Budget cut prompts rumors of furlough; Nothing's been decided, spokeswoman says, published 11/01/08 The plan announced Monday will account for about $7.5 million of the shortfall, with earlier measures, such as hiring freezes and reducing expenditures, travel and nonessential renovation projects, making up the rest. Greenberg tasked the university's six colleges and administrative units to create internal plans to reduce spending to make up for the budget shortfalls. Since state money is unlikely to be recouped, Greenberg said turning to savings to make up the difference was inappropriate. He asked administrators to prepare for an additional 5 percent cut on top of state cuts already ordered. Already, 2 percent of that padding is expected to be cut by the Legislature in January. Cost-cutting measures include postponing buying equipment and forgoing nonessential employee training. "Given that almost two-thirds of our expenditures go to support personnel, there is no way to reduce our spending without impacting employees," said MUSC Vice President for Finance Lisa Montgomery. Those who work in clinical settings treating patients are not subject to furlough. Also exempt are research positions, which actually bring in money from other funding sources, said Dr. Jerry Reves, MUSC vice president for Medical Affairs. Monthly paid employees will have a reduction equal to one day of pay for each month from January through April. Bi-weekly employees will have each of their 11 pay checks beginning January reduced equally to account for the four days of leave. Nearly 300 employees have agreed to voluntary furloughs or pay cuts, including many senior administrators. Also, a fund is being established to help those most vulnerable to the unpaid leave. "It is a big deal to employees who are living at the edge financially," Greenberg said. "We don't take any single day of furlough here lightly." The Associated Press contributed to this report. Reach Jill Coley at 937-5719 or jcoley@postandcourier.com. |
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Posted by eyfigueroa on November 25, 2008 at 8:20 a.m. (Suggest removal)
The president Mr. Greenberg is leading by example by taking an 8 day furlough as opposed to the four day asked of employees. Mostly symbolic I know since he is probably one of the highest paid employees at MUSC. However he sees the importance of walking the walk, so to speak.
I am also impressed with the employees working together to build a fund to help those who would be most effected by the furlough.
Instead of complaining Mr. Greenberg is actually looking at this budget cut as well as the upcoming shortfall as a way to learn how to do more with less.
Too bad our federal government cannot do the same.
Posted by zippychick on November 25, 2008 at 9:08 a.m. (Suggest removal)
I am flabbergasted over this piece. How can 1,200 people be responsible for covering the deficit and 5,000 will be asked to do nothing, most of whom earn 2-5 times what the 1,200 earn, live in luxurious homes, send children to private schools, and vacation in the most desirable locations.
How can this be justified?
Does it make mathematical sense to ask 1,200 to take 4 days’ pay cut when taking 2 days from all, high and low earners alike, would cover the debt faster and more equitably? For people who are trying to feed children, pay tuition, and save, gutting ¼ of a paycheck is significant.
I am sure that 2 days’ pay from MUSC's several hundred physicians who make greater than $300,000 would save MUSC far more than taking 4 day’s pay from those who make $55,000.
Let’s do the math. If I bring home 5,000 a week, and you take 2 days’ pay, you get 2,000 from me.
Also, if I was so fortunate to make 5,000 a week, I would probably not suffer terribly.
In contrast, if I make 500 a week, and you take 200 from me for 2 days’ pay, you will be taking a meaningful sum from my family. Also, you have to take many more days of pay from me to cover what you would get by taking 2 days from my highly paid colleagues. So, why not do just that…take the money were it is abundant and won't be missed as much.
Also, not all “researchers”, as critical as they certainly are to our enterprise, bring in their salary with grants; many have no grants at all. How will MUSC separate those people from researchers who pay 100% of their own salary? Really, I fear that we have created a protected class of employee at MUSC, and those we are protecting are not in need of protection. It is also disingenuous to tell those 1,200 that administrators will be taking cuts without naming them and letting us follow their salary in THE STATE. Many administrators at MUSC are also clinicians and researchers. So, you have a loophole for administrators in this regard. For example, if I am an associate dean, and an MD (clinician), I take no cut. Also, because I am an associate dean and an MD, I am probably making 400,000 annually that is not reported to THE STATE because my salary comes from sources that are not counted publicly…thus I can hide my earnings and protected status.
By having this assistance pool are we not creating a 2nd protected class? Where is this pool coming from, the paychecks of the those within the 1,200 who will not ask for help out of self-dignity? I am left to conclude that the middle-earners are shouldering the financial burden for the ultra-wealthy and the ultra-poor. I wonder how this happened...who said what to whom to cause this utterly unfair distribution of injury. I am ashamed. I also am certain now that many at MUSC are not valued. In fact, I confidently assert that most of those 1,200 people are utterly disposable.
Posted by suec on November 25, 2008 at 9:22 a.m. (Suggest removal)
MUSC is already short on clinical type workers. By that, I mean employees who are directly related to patient care. They are making the cuts in areas that will not have a direct impact on patient care.
Each person in the finance and admi depts couldake a day off without the patient ever feeling it.
By the way...I work in hospital administration so I am not talking out of arse here.
Posted by edwardh1 on November 25, 2008 at 9:41 a.m. (Suggest removal)
maybe MUSC should cut back on all their billboard advertising?
Posted by eyfigueroa on November 25, 2008 at 9:48 a.m. (Suggest removal)
zippy: your point is well made and yes, those who can least afford it will be 'punished' by this forced furlough.
I'm not sure if any lessons will be learned by this. However it is what it is and I only hope that those who suggested setting up monetary aid for those hit hardest by this budget cut were sincere and those who most need help recieve it.
Posted by suec on November 25, 2008 at 10:19 a.m. (Suggest removal)
now that would really make sense!
Posted by johnnyholmes on November 25, 2008 at 10:47 a.m. (Suggest removal)
Those who voted for mr. O'bama have no one but themselves to blame. Everyone knows hospital workers are the most overpaid/underworked employees in the country. Keep hiring those underachieving, knuckle dragging humanoids and stop complaining when it is deemed 1,200 of them out of 5,000 are expendable. Just say "yes we can, yes we can" doesn't it feel better already? One month 'til Christmas y'all. BTW mr. and mrs. O'Bama are sending their kids to private school in D.C. @ $500 per week, per kid...."yes we can"
Posted by Girleygirl on November 25, 2008 at 10:59 a.m. (Suggest removal)
Posted by johnnyholmes on November 25, 2008 at 10:47 a.m. (Suggest removal)
Those who voted for mr. O'bama have no one but themselves to blame. Everyone knows hospital workers are the most overpaid/underworked employees in the country.
From your own statement, why do people need to blame Obama when our country has been suffering for a very long time?
Posted by northeastguy on November 25, 2008 at 11:17 a.m. (Suggest removal)
furlough the Govonor, he has got to be the worse in the US, figures that worse is best for the Repulicans, this guy is 100% useless ! Collect some revenues, this state is already at the bottom in almost every ranking there is, so how does it help to cut these agencies by another 20%? If we take the gov off the payroll we should save a few bucks.
Posted by johnnyholmes on November 25, 2008 at 11:26 a.m. (Suggest removal)
G.girl,
mr. O'bama ran on a platform of change and then replicated Clinton's regime verbatim---he is a snakeoil salesman, "yes we can" will soon be replaced by "oh shyt".
Posted by suec on November 25, 2008 at 11:52 a.m. (Suggest removal)
"our country has been suffering for a very long time"
really?
Posted by Girleygirl on November 25, 2008 at 11:55 a.m. (Suggest removal)
Johnny- I'm trying to understand why people need to blame Obama when our country has been suffering way before him and per your own statement, hospital workers are always overpaid and underworked........
The hospital may need to revamp their management, and cut some of their expenses and they are doing that now but I don't think this story ahs to do with Washington politics. If you were being sarcastic then okay, but if you are serious please help me out and help me try to understand your statement
Posted by laurasmorris on November 25, 2008 at 11:56 a.m. (Suggest removal)
I'm sure you Obama haters will have many opportunities to complain over the next 8 years while he tries to clean up the mess made of the economy by the Bush Administration and Republican Congress, but spare me having to read Obama bashing before he even takes office. Nobody could be dumb enough to think he is responsible for or could correct a state budget disaster.
Posted by justmyview on November 25, 2008 at 12:33 p.m. (Suggest removal)
Does anyone know if the Governor's office will also take furloughs?
Posted by hwilson48 on November 25, 2008 at 12:44 p.m. (Suggest removal)
And the poor president of MUSC has so generously volunteered to take an 8-day furlough, which will cost him $7000 out of his $683,000 salary.
Posted by ashleyriver on November 25, 2008 at 12:52 p.m. (Suggest removal)
Just great. That's just terrific. Let's keep the cigarette taxes at the lowest level in the country and watch as the finest hospital in the state (MUSC) and the highest-ranked (academically) public university in the state (Clemson) both have to resort to furloughing employees and cutting back on salaries and hiring just to try to stay in business.
As a native South Carolinian, I've endured ad infinitum the idiocy of those who seem hellbent on making sure this state remains behind the rest of the country in nearly every socio-economic ranking enumerated. An individual or group's desire to remain ignorant and isolated is no reason to condemn everyone around them to a similar fate. To paraphrase Shakespeare: "What fools these citizens be."
Posted by theronce on November 25, 2008 at 1:36 p.m. (Suggest removal)
Sometimes, ashleyriver, you make sense. This is one of those times.
Posted by Rooster07 on November 25, 2008 at 1:41 p.m. (Suggest removal)
I guarantee that most of the 1200 employees that will be fuloughed live paycheck to paycheck and to not have 4 days of pays could be devastating. You could probably furlough 600 of higher salaried workers for two days and accomplish the same thing.
Posted by noel3 on November 25, 2008 at 1:43 p.m. (Suggest removal)
I thought that state law required furloughs to be across the board at state agencies? That is what they are telling everyone at CU. Why does MUSC get special treatment?
Posted by slimbo6969 on November 25, 2008 at 1:58 p.m. (Suggest removal)
If everyone read the article they would see that the four days will not come out all at the same time, but divided up over a four month period...
As stated by Dr. Greenberg...
"Monthly paid employees will have a reduction equal to one day of pay for each month from January through April. Bi-weekly employees will have each of their 11 pay checks beginning January reduced equally to account for the four days of leave."
Posted by SCGirl0901 on November 25, 2008 at 2:59 p.m. (Suggest removal)
I'm glad someone clarified how the money for the furloughs will be recouped. I don't know yet if I'm one to have to participate in this or not, but I will say that at least MUSC is trying to be compassionate. I wish people would open their eyes and recognize this.
If they didn't truly care about its employees, they would send you home for 4 days in one pay period and very quickly realize a financial return. Or worse, send you home permanently.
And before any of the normal "stuff" starts - no, I'm not in management. I'm just an employee in a non-managerial position, but is willing to look at things objectively.
If you make $20.00 per hour and work 32 hours in 4 days - that's a total of $640.00. That amount taken over 11 pay periods amounts to a loss of $58.18 for 11 paydays.
I don't know about anyone else, but I can handle that easier than $640.00 out of one pay check.
Have a good one...
Posted by CNN_10 on November 25, 2008 at 3:04 p.m. (Suggest removal)
What does Barack Obama has to do with MUSC??? And his kids going to private school??? does not have anything to do with MUSC at all. need to stick with the issues concerning the article not about Obama. He won the election fair and square deal with it.
Posted by suec on November 25, 2008 at 3:10 p.m. (Suggest removal)
They could just start laying people off. At least they are keeping their jobs.
Posted by greyman on November 25, 2008 at 3:14 p.m. (Suggest removal)
This has been going on at MUSC. My spouse worked there. People were getting sent home or put "on call" all the time. I'm glad she left. The hospital from my understanding has been in trouble for awhile. They built the entrence to the chest pain center wrong. The ambulances can't get to where they need to be. So they can't bill like they are suposed to. So they are loosing tons of money just from that. Who knows what else.I just wounder what they will do when the people working there get fed up and find other jobs. Oh and it must be tough for the poor president. He probably will have to wait to buy his 3rd house or second ferrari. I feel for him. With everything going on there you would think they would find a new pres.
Posted by bm1961 on November 25, 2008 at 3:28 p.m. (Suggest removal)
What are the people at MUSC complaining about, at least they will still have their jobs after they take the required time off. Sounds like they are out of touch with what is happening around them. I do believe the fat cats at MUSC will not take the hit for the cuts as hard as the general worker population.
Look at all the companies that have permanently laid off people becuase of the economy. I am having to take vacation becuase my company initiated a "Shut Down" for a week. If I dont have vacation, I am forced to take the time off without pay (which will be coming soon) Somebody needs to wake up downtown and look around at what is going on. Its no secret that MUSC is a bloated organization, you just have to talk to some people inside the organization who see the waste. We all need top notch medical care, but how efficient is MUSC in providing that care. Last time I walked in to some of the buildings of MUSC, I wondered if I was entering one of the 5 star hotels downtown charleston. They could sell some of the fancy artwork and keep some people employed.
Posted by nappyd on November 25, 2008 at 3:31 p.m. (Suggest removal)
<<Posted by ashleyriver on November 25, 2008 at 12:52 p.m. (Suggest removal)
Just great. That's just terrific. Let's keep the cigarette taxes at the lowest level in the country and watch as the finest hospital in the state (MUSC) and the highest-ranked (academically) public university in the state (Clemson) both have to resort to furloughing employees and cutting back on salaries and hiring just to try to stay in business.
As a native South Carolinian, I've endured ad infinitum the idiocy of those who seem hellbent on making sure this state remains behind the rest of the country in nearly every socio-economic ranking enumerated. An individual or group's desire to remain ignorant and isolated is no reason to condemn everyone around them to a similar fate. To paraphrase Shakespeare: "What fools these citizens be.">>
Even worse when one stops to remember that education shouldn't be a for-profit "business" excepting private schools. But yes, the scam of keeping cigarette taxes low was a nice one to pull on the state. Even if that money would have been misappropriated, the higher prices which could have led to fewer smokers and lower healthcare costs would have made it worthwhile.
Posted by DawnM on November 25, 2008 at 3:51 p.m. (Suggest removal)
So are nurses expected to take the furlough? I can't imagine what it's like on the floors for them and the patients with the freeze in hiring.
Posted by northeastguy on November 25, 2008 at 4:21 p.m. (Suggest removal)
Nurses work for MUHA, not MUSC
Posted by TheSafetyMan on November 25, 2008 at 4:21 p.m. (Suggest removal)
Just goes to show you how man's greed even effects health care. Warning: don't get sick anytime soon.
Posted by slimbo6969 on November 25, 2008 at 4:26 p.m. (Suggest removal)
DawnM wrote:
"So are nurses expected to take the furlough? I can't imagine what it's like on the floors for them and the patients with the freeze in hiring."
These 1200 individual furloughs are for the University side of the house only...
The Medical Hospital is handling this a different way... And I am not sure about how this is being done, but I do know that its going to be done in a fair way...
SCGirl0901 wrote:
"If you make $20.00 per hour and work 32 hours in 4 days - that's a total of $640.00. That amount taken over 11 pay periods amounts to a loss of $58.18 for 11 paydays."
It should read $58.18 per payday for 11 paydays...
Posted by SCSIGirl2 on November 25, 2008 at 5:25 p.m. (Suggest removal)
In CA back in the early 90s we had furloughs (county of San Bernardino), it was for 80 hours. We worked 80 hrs and got paid for 76 hrs, for 20 pay periods. In the beginning it was hard but we got used to it, when they stopped taking the money and we got paid for 80 hours, it was like a pay raise! Then the county then shut down (with the exception of emergency departments) for two weeks at the end of the year. I spent my "paid" furlough time in Charleston, SC for Christmas - I sure miss SC :o)
I hope the furloughs work out well for those involved. We here in CA may not be far behind....again.
Posted by Pillsbury on November 25, 2008 at 6:20 p.m. (Suggest removal)
Johnnyhomes, how can you say the things you do? My wife is an RN and she works nonstop 13 hours every day she works. She is overworked, usually having 7 or more patients, and comes home exhausted.
I would really like to know what important job you do for a living. Really really would like to know. Somehow I'm guessing you don't have to have a college degree . . .
Obama has not even taken office yet. How can any of this be his fault?
Posted by gaitor66 on November 25, 2008 at 6:47 p.m. (Suggest removal)
I think johhnyholmes thinks with his butt I work at musc and I dont drag my knuckles.I have been there for 20 years and have a family to support.I think this is the best way to cut cost,the furloug I mean. I am part of the furlough,but I still have a job.Johnnyholmes,if you dont walk the walk then dont talk the talk.You my friend dont have a clue.
Posted by SimplyMad on November 25, 2008 at 7:14 p.m. (Suggest removal)
It is going to be a hoot. Mr Change? Obama is Mr carter/clinton redux.
http://www.foxnews.com/politics/2008/11/...
Posted by SimplyMad on November 25, 2008 at 7:21 p.m. (Suggest removal)
This should get the attention of the utopian dreamers that seek universal healthcare. It DOES NOT EXIST!
Money does not grow on trees, and please get a grip on reality. Obama can not deliver nothing more than $7.4 TRILLION dollars in debt, thank you bailouts!
Welcome to the Animal Farm.
Posted by DawnM on November 25, 2008 at 7:58 p.m. (Suggest removal)
What does obama have to do with this news story?
Posted by SimplyMad on November 25, 2008 at 8:17 p.m. (Suggest removal)
Dawn...welcome to state run healthcare. LMAO, it is a picture of things to come...no money....no quality healthcare. good luck.
Posted by jamesbetram on November 25, 2008 at 8:36 p.m. (Suggest removal)
As an employee of MUSC, it is important that the public understand the inside view of the recent furloughs at MUSC. First, the furloughs only affected non-clinical workers. We are short on these personnel at the current time and have been asked to turn off the lights and computers when possible. The reasons that we are in this situation:
1. The state budget cuts - necessary due to decreased tax revenue.
2. Poor performance at the new Ashley River Tower (ART). The ART has not been able to generate revenue. It is really nice but probably too nice for a public hospital. Might perform better as a hotel given the waterway views!
The first letter suggested that the physicians take a pay cut prior to the support staff at the university. First, the public should know that the average physician salary at MUSC is about 125,000 to 150,000. Now, this sounds high. However, it is important to realize that this is about 1/3rd of the average salary of a physician (with similar number of years in practice) practicing in the community. Thus, MUSC physicians already take a 2/3rd's pay cut to serve the public in a state hospital. MUSC physicians work the same number of hours as community physicians while also teaching students from all disciplines and conducting research.
Posted by jamesbetram on November 25, 2008 at 8:37 p.m. (Suggest removal)
We have some ongoing concerns however:
1. The president plans to continue with some buiding projects on campus. These projects aim to build two new buildings on G lot: Bioengineering Building and a Pharmaceutical Discovery Building. Now, MUSC has secured monies from the state that have to be used for these purposes. However, MUSC does not have the funds to equip and maintain these buildings. I am doubtful that we can even afford to turn on the water or power to these buildings. Many of the faculty do not support these buiding projects.
2. There is serious concern about the financial viability of the ART. These concerns have led to the university seeking vendors to lease space in the main ART building to raise capital. One who enters the buiding immediately realizes the beauty of the building, however, there is a lot of dead space in the building that is not contributing to a net financial gain. In other words, atriums are nice but they do not generate revenue. It is my understanding that the Board of Trustees was most disturbed that MUSC went from operations in the black to operating in the red with the opening of the ART. This is possibly due to above mentioned problems (ambulance bay too small to accomiodate ambulances, no staffing to open hospital without traveling nurses, ect). However, we are not hearing that this facility has started operating in the black. At one point there was an estimate of a 2 million loss per month (possibly up to 3.5 million/month). Recently, clinical services that were normally in the main hospital have been moved to ART to balance the losses (moving clinical services that generate large amounts of revenue to ART to create an appearance of improved financial viability).
3. There are remaining concerns that we have too many managers/administrators. For instance, we have so many Deans and Associate Deans that have high salaries. These are at the expense of the physicians that care for patients. There really need to be some cuts here.
4. Limited communication - most communication has been achieved through the P&C and not through MUSC. For instance, the media knew of the plan prior to the employees at MUSC.
PLease consider these things prior to commenting!