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moving forward

This has been an extraordinary week for Southwestern Vermont Medical Center. The pace and magnitude of change has been breath-taking.  I recognize that the level of anxiety in the organization for the past few weeks has been high and difficult to tolerate. The pain of such change in the lives of people we care about is real. 

 
As a caregiver myself, the personal distress involved in leading such change is sometimes hard to tolerate. However, I recognize for myself and all of the management team and employees that this distress is a measure of the caring that we feel. This is a relationship-based care giving organization. The passion and emotion we feel is what makes us good at what we do.
 
Now we enter a time of taking stock, moving forward, and improving.
 
First and foremost, I want to thank the hundreds of staff who have managed your anxiety while continuing your outstanding patient service. Our patients deserve our best, and I am impressed that SVMC’s caregivers have maintained your utmost professionalism throughout this recent ordeal. Our patients appreciate it -- and hospital leadership appreciates it enormously.
 
Some folks still ask why this has happened and want to know where we go from here. Senior management is holding multiple town meetings to provide direct dialogue about these issues. We are ready to listen, learn, and lead. I would ask employees and medical staff to participate in the town meetings and let your concerns be known.
 
I assure you again that the management team kept patient care as our highest priority when making these difficult decisions. Management took the biggest hits – including a 25% reduction in positions and substantial reductions in benefits – in our own administrative structure and size in order to save jobs at the bedside. We also cut expenses everywhere we could find them before even considering the option of reductions in force.
 
Now is the time for embracing change for the benefit of our hospital community. I encourage everyone to influence the direction of these changes as we go forward. The senior management team is smaller, and we invite and welcome your input. We care about what people think.
 
For our organization to continually improve, we must use our performance improvement experience and knowledge to enhance patient care and remove waste throughout the organization. Talk to your local manager and medical director about your ideas for change and come to town meetings to express your views. Post comments on my blog if that is your preferred method of communication. Take responsibility for the changes you see as necessary and push their implementation in your area of the organization.
 
Thank you for your patience during this trying time, and for your help in upholding our longstanding tradition of health care excellence.
 



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15 comments


why not all comments are posted
Some folks have submitted comments that are quite personal and even hurtful toward previous officers of this organization. While I am committed to clearing the air, I do have editorial authority over posting of comments. If people want to criticise me or current staff without inappropriate language, I will always post. I will not post profanity. I will also not post personally vindictive statements about previous officers of this organization. I know there is anger; but I will not further stir the waters. It is time to focus on the future.

Mark

Mark Novotny on May 10, 2009 09:54 PM

Kara Leonetti, Administrative Secretary
There is much sadness in my heart. I understand reduction in force was a last option and to see those leave who have been here for 20 years or longer, brings a sense of mourning for some. Benjamin Franklin once said "if you would not be forgotten as soon as you are dead, either write things worth reading or do things worth writing". Those who have left have done some phenomenal things for this organization which will not be forgotten and that is what is important.

Last week was not easy for anyone, but I agree that it is time to move forward and to focus on what is. Today is a new day and should be treated as such. I think we should take what we can from this experience and learn from it; I know that I have changed my perspective personally and professionally for the better.

on May 11, 2009 02:12 PM

What happened to the money?
As employees whose jobs are at stake and who have already seen friends kicked out the door, we should have a right to know what happened to all this money? How could someone make that big of an error? If someone was embezzling, we have a right to know!

on May 12, 2009 08:54 AM

to "what happened to the money?"
Lots of people have this same concern. It is natural to worry that money could have been taken. A careful look back is going on to assess this. There is no evidence of theft. The errors were in projections of future revenue, and it seems, on the face of it, hard to see how one could steal money not yet received by the organization. We will find out, however.

Mark Novotny on May 12, 2009 10:08 AM

Transparency
We hear this word a lot only to have the waters muddied or the windows fogged, you pick your analogy. I choose to pick muddy waters because it will take a very long time for the mud to settle and the waters to run clear. Having said that, why have we not seen individuals on the board accept and take responsibility for the issues that have and will continue to plague the health system with. It comes from unnamed sources that some of these individuals have not always had their integrity intact. I will not drop names, but do know that when the incident of the caterer hit the news some years back, there were board members that benefited from the services, but were never held accountable. LETS GET HONEST and QUIT COVERING UP what is meant to be TRANSPARENT, the trust is gone and it will take a lot more than you Mark to bring back integrity, honesty and justice and stewardship to the system. The Board needs to stand up and not make you the AXEMAN and possibly the final scapgoat. It is time to focus on the future, but the past is always is look into the future based on past practice creating future habits. Respectfully Submitted with restraint.

on May 12, 2009 10:22 AM

To Kara
your sentiments are well written (Ben Franklin would be proud of you) and capture the strange brew of emotions we are experiencing as an organization. You are right on about the learning piece as well. "those who do not learn from history are bound to repeat it"- George Santayana. In a learning organization, everyone can help remember the lessons of the past. It's values and contributions like yours that will support moving forward. Thanks!

Mark Novotny on May 12, 2009 11:04 AM

to transparency
As CEO, I deal with the board frequently. Although I cannot speak for the board, I can assure you that the Board takes its responsibility to the institution, its employees, and our community very seriously. That should be evident by the amount of change at SVMC recently. This kind of change does not happen without the involvement and approval of the Board. As the Trustees’ representative in the hospital, it is my responsibility to carry out the Board's wishes regarding the overall direction of our organization. The catering incident you refer to happened several years ago and involved the misuse of our non-profit tax status. It sparked several major changes at SVMC. First, the incident was thoroughly investigated. No board members, physicians, or SVMC senior managers benefitted financially from the catering incident. Secondly, the health system promptly and fully settled our tax obligations.

Most importantly, that incident prompted the Board to establish a strong Compliance Committee and hire an independent, experienced compliance officer that reports only to the board. The Compliance Committee's job is to oversee how well management follows the numerous regulations and regulatory agencies governing non-profit health care organizations.The committee has developed a strong conflict of interest section in the Board's bylaws and oversees the Trustees’ compliance with this provision. One of the first acts the committee and the compliance officer took was to put in place 13 recommendations to help prevent problems like the catering incident from recurring and to preserve SVHC's non-profit status.

In the same way that personnel files are confidential, what disciplinary procedures the board takes regarding its own members also remain confidential. In my view, transparency does not include public humiliation of employees, trustees, or physicians.

SVHC’s compliance department is built on the ability of anyone to raise a question confidentially and anonymously about the regulatory, procedural, or legal matters without the fear of retribution. If you know of a conflict of interest or a rule or regulation that's not being followed, I strongly encourage you to contact our chief compliance officer, Austin St. Hilaire, via email (stha@phin.org), phone (802.447.5055 or 802.558.0173) or in person at the SVMC Lodge Building.



Mark Novotny on May 15, 2009 04:35 PM

Blame Game
Let's stop the blame game. The people who should have been fired and will be fired know who they are. Let's move on and fix this mess and stop complaining about what went wrong.

on May 19, 2009 08:12 AM

Transparency and Services
It seems as though the full extent of the shortfall will be larger than first projected. My concern, and the community's fear, is that additional services and support staff that deliver services, will have to be cut. In fact, some have already been cut.

In order to heal, our community needs to know that those responsible are held accountable. That includes a sincere apology to the community. After all, every hospital was affected by our global financial crisis, and many have not suffered as much as SVHC has.

on May 21, 2009 11:11 AM

to transparency and services
The Board, the senior management team and I are aware of the pain these cuts have caused some within the SVMC family, and in the effected families in our community. If there had been any other way to manage this financial problem with less disruption to the lives of our neighbors, we would have chosen another route. This does not lessen the pain for those who have lost their jobs, and for this we are very sorry. We are endeavoring now to take each step as carefully as time allows, to minimize the chances of this kind of pain ever happening again.

Several communications to me, the Board, and to others in the SVMC have suggested a need to hold accountable those that “got us into the mess” that the Board and I have been struggling with since I became CEO in March. It is now time to address those suggestions.

The difficulties being experienced here are not unique to Bennington Vermont. Our community is close, and the effects on our hospital have touched almost every family in our community. So perhaps the effects are as unique as our community, but 40% of hospitals in the United States are operating in the red this year. There is no person or people in Bennington that can be held accountable for the global financial recession we are experiencing. Government, private payers, and individuals have less to pay for ever increasing costs of healthcare.

The information we have demonstrates that the local accountability is for a failing to correctly project the realities of our financial position at an earlier point in time. An earlier realization may have allowed the layoffs that have occurred to have been done over a longer time frame. Knowing the severity of our revenue shortfall earlier might have resulted in pursuing other initiatives for the mechanical plant renovations sooner. We could have taken more time to review and revise service and vendor contracts. We might not have made decisions to add services or staff this year. We will never know. What we do know is that these changes would still have been required of us. The reality could have been realized sooner, but the reality would have been the same.

The world is in a recession. How healthcare costs are paid has changed in the past two years, and may change again dramatically in near future. We are earning less money than we have in the past. We had to adjust how much we were spending or face a new reality of failing this community on a catastrophic scale. At SVMC, we have chosen to focus on the changes we need to make to secure our future for this community. The past is useful to us only as a lesson for making a better future for the people who rely on SVMC. Those responsible for failing to realize our dilemma earlier in time no longer work here. But we will not engage in a continuing focus on past mistakes. We will continue to focus on our future, working through the difficult recession we are all experiencing, the changes we need to make today, and the well—being of our neighbors. We will not look back, but work together today to make a great future.

The mid-year audit scheduled for completion in June will provide an accurate accounting of our financial status and will influence whether additional adjustments to income and spending are required. Senior management will share the results of the audit with the community when they become available.

Thank you,

Mark Novotny



Mark Novotny on May 27, 2009 11:33 AM

Gary Strubel, Health Sciences Librarian
I agree that we need to move on, but we also need to fully understand how we got here. We can't just put the past behind us. We need to learn from that past. To quote George Santayana (in what has now become cliché), "Those who cannot remember the past are condemned to repeat it." That said, I believe that the frustrations that are permeating our community and institution are due, in part, to the waiting. We have become an impatient culture, where we want more, better, faster. As frustrating as it is however, I am more than willing to wait for a careful and reasoned analysis of how we got to where we are. How much of it is simply due to the recession and how much do to poor planning? Could we have planned better, or was this inevitable? How can we plan better in the future. I'm not looking to place blame, nor am I looking for a public hanging. Rather, I'm looking to learn. In order to move forward, we must educate ourselves. But to properly educate ourselves, it will take time. The mid-year audit is the first step, and a careful analysis is the next. Mark, you have been very gracious and patient with all of us during this trying time. I appreciate your optimism. I'm also looking forward to learning what we can from the audit, even if it means another restructuring (and I say that knowing that I may well be a casualty of that restructuring). Either way, I call for all of us to have a reasoned patience.

on May 27, 2009 03:37 PM

Audit Complete ?
With all the discussion and focus on the audit I feel the timing coincidence ? Rumor is Audit has been completed ? Any truth?

on June 01, 2009 01:06 PM

Board Member Elsewhere
I read the article about the defined benefit plan being part of the cause of the deficit. I'm sorry, but that is unacceptable. I have no doubt that this may be an issue, but certainly a strong CEO, CFO or strong Board would have planned for such a scenario (as most companies have in switching out of defined benefit plans). Not only should the administration have been aware of the possible future ramifications, but the Board should have also known. I'm assuming that the Board isn't comprised of just people off the street. The Board President says he has confidence in the current administration. With no offense to Dr. Novotny the Board also apparently had complete confidence in the previous administration. Perhaps more Board members should take a hard look at their positions. They need to evaluate whether they have the ability and commitment to take on the job. Not just anyone can be an effective Board member. Their action or inaction can have a deleterious effect on the whole area being served by the hosptial.

on July 02, 2009 07:12 AM

a comment about Board accountability to Board member elsewhere
I have had extensive discussions with our Board about how we got to where we are. I have shared with the Board, medical staff and hospital staff my own regrets about not speaking up more about my own concerns, and not challenging financial assumptions I was given to work with. The following is a quote from our Board Chair, Dr. Guerrero, on this issue:

"My greatest pain as Chair of the Board of Trustees is the suffering of those who have lost their jobs and the frustrations of those staff and employees who have found their jobs more difficult because of management failures. We, the Board, could have and should have done better. We are reviewing past events in order to improve our performance. However, there is no bright line between reviewing and excuse making and we need to avoid the latter. We accept responsibility for our failure to adequately oversee management. I see the angst of the Board and, yet, I feel the energy and the conviction to do it right-- to look at our processes and the tools of governance so that this does not happen again. SVMC,CLR,Home Health and Hospice, Northshire and Deerfield Valley Medical Centers are too important to our communities to expect less."

Mark Novotny on July 08, 2009 04:23 PM

Leader?
If I understand what you said, you should've spoken up more about concerns and challenged financial assumptions that you apparently didn't think were accurate. After reading the Bennington Banner this morning, I believe you should take yourself out of the running for CEO. A leader is not afraid to stand up and speak his/her mind. An adminstrator challenges all assumptions for the good of the hospital. This doesn't mean that you are a bad person or that you are not a good doctor. It simply means that you were high enough in the hospital to have made a much more positive difference, and you did not.

As for the Board Chair's comments, the board thought they were doing right for many years while overseeing management. They didn't listen to the docs who were telling them of the problems. I've been around long enough to know that the Chair has heard complaints from some of the most prestigious doctors ever to walk the hallowed halls of the Putnam. Those complaints were poopooed, and now it is time to pay the piper. From a business perspective, I don't know how the Board can justify not resigning. They can still do the hospital a service by looking for other members to fill their positions.

Please don't misinterpret this as personal. These comments are purely business as I have no interaction with any of these people. I do however wish to see the SWVMC in business for many years to come.

on September 01, 2009 08:32 AM

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