Open Letter to Novant CEO Paul Wiles for his visit to PWHS, Monday 4/20/09

Dear Mr. Wiles,

Welcome back to Manassas.    We have some questions for you. 

Are you aware that PWHS employees are not receiving their annual cost of living / performance raises in 2009?   

Will the severance packages and stay bonuses going to executives come directly out of the 200 million Novant has pledged?

Novant is in the news for challenging / appealing the expansion of other health systems in North Carolina.   Do you think this will occur here in Northern Virginia?

Does Novant have policies on severance that will take effect at PWHS when we're part of the network?  What is the organization's philosophy on severance?   If a PWHS employee is no longer needed after a transition is made, what will the process be?  

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10 AM update:  local media spotted on the fourth floor - keep an eye out for articles.

12 PM update:  emails about how no reminder emails or overhead pages were made about the event this morning have come in.   

2 PM update:  multiple messages coming in about employees being denied by their supervisors to attend meet and greet with Mr Wiles.  

Preview for Monday... Open letter to media and community leaders... news links

On Monday, Novant CEO Paul Wiles will be at Prince William hospital to meet and greet employees.   We will have a special report Monday morning with questions we'd like to present to Mr. Wiles.   

In the meantine, here is an open letter -- one version of many as all members and supporters are encouraged to write  -- that has been sent to local media and our government representatives: 

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Please find within the following potential topics of discussion for the meet and greet with Novant CEO Paul Wiles this Monday, April 20, on the fourth floor of the hospital at 10 AM.

In a recent memo, PWHS CEO Michael Schwartz questioned our motives and indicated that perhaps we are trying to advocate or representing a union in some capacity, but this is not true. We are local, non-profit (our blog has received nearly 5000 'hits' but it does not generate any money), non-union (and we're pretty much all old school GOP people and VERY anti-union in our personal politics), we are grassroots and most importantly we are too scared to go public with our IDs because we know it would cost us our jobs. One only has to search the Post's archives for articles about PWHS to see what Schwartz is capable of and the fact that during his tenure there has been a huge rate of executive turnover.  There is already an email / blog witch-hunt in effect at hospital, wasting time and money.

He's also claimed we've written a lot of incorrect information, but won't say exactly what of the items we've presented to the public are not accurate.

Our platform remains:

PWHS does not need to be sold, it is only being sold and in the state that its in both financially and morale-wise is because Schwartz had no plan B when the INOVA merger failed. On the blog you'll find a link to an article in Reuters stating that PWHS management claims our poor financial shape is due to the failed merger.

According to reports from corporate insiders that have not been denied, execs like Schwartz are getting a year of severance if they go due to the sale. They'll also receive a bonus of six months of their salary if they stick around to help the transition, pre-severance. No one is receiving cost of living or performance raises at PWHS in 2009 due to the economy. We think these severance packages and stay bonuses are wrong and need to be exposed and owned up to.  EVERYONE, since anyone lose their job due to a merger should have some kind of similar plan in place, whether their job loss will occur right off the bat post-sale or after the transition is complete.

We believe Novant would not be doing this if they were not SURE there was money to be made. Money PWHS should be able to find a way to make on its own, as have ALL of our non-profit neighbors, Potomac, Mary Washington and ESPECIALLY Fauquier...

We believe this is also mainly about Novant expanding our freestanding ER and building a new hospital in Haymarket, in order to compete with Fauquier.  Ironic since one only needs to do a Google news search on Novant and find that they're constantly in the news for challenging other NC health systems'
expansions.

The details, conditions and terms of this 'partnership' (SALE!) are going on behind closed doors, as happened with INOVA. "Partnership" and "Merger" are euphemisms that PWHS is feeding the public. This will be a SALE, an acquisition.

MOST IMPORTANTLY: We believe Virginia citizens, Prince William patients and local employees should not be under the thumb of an out of state healthcare giant (5th largest in the country, not counting the 27% ownership of the 7 for-profit HMA hospitals they have a piece of in the Carolinas) to the tune of $200 million dollars.

The fact that the hospital will keep its name and a local board is pure window dressing, throwing the community and lesser-informed employees a bone. The board serves at the CEO's leisure. There is no true accountability or oversight at PWHS, there will be even less when it's an out of state corporate CEO that the puppet board will be answering to.

We hope you can help the public know about what's really going on and perhaps be able to publicly ask some of the hard questions that we can't, as we still depend on our hard work at our independent community hospital to feed our families.

Thanks for your time and looking out for the community.

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PWHS in the news, reader comment references Save PWHS

http://www.fauquier.com/news/2009/apr/14/looming-crisis-skilled-nursing-shortage/

Novant in the news, as mentioned in the letter above:

http://www2.journalnow.com/content/2009/apr/15/novant-appeals-ok-cmc-northeast-patient-tower-conc/

be sure to check the "Hospital Building Booms" blurb to the left of main article to see the health systems Novant is challenging:

http://www.newsobserver.com/business/story/1489026.html

Don't forget to check back in Monday morning!!

Weekly Update: Another look at Novant... a Challenge to CEO Mike Schwartz... frontline reporting...

TIME TO STAND UP AND ASK QUESTIONS: NOVANT IN THE NEWS

Now more than ever, the citizens of Prince William county and PWHS employees need to take an active interest and look at the big picture of what it means to allow this outside company from North Carolina to "partner with" (BUY), "invest in" (BUY) or "merge with" (BUY AND TAKE OVER) our community hospital and health system.

PWHS' intended "partner" Novant is in the news for being named the 5th largest medical group in the United States:

http://www.bizjournals.com/triad/stories/2009/04/06/daily26.html

Novant, a "non-profit", owns 27% of 7 for-profit Healthcare Management Associates (HMA) hospitals:

http://www.fiercehealthfinance.com/story/hma-sells-seven-hospital-stake-to-novant/2008-04-02

http://www.wikinvest.com/stock/Health_Management_Associates_(HMA)

Based on all of this we believe the following to be true:

Novant is a healthcare juggernaut! It is becoming increasingly clear that the picture being painted for PWHS employees of a humble non-profit from the south coming to help us out is NOT what is really going on. This is more than that. This is more than old Duke University alumni CEO cronies forming an alliance to make themselves richer. This is corporate healthcare trying desperately to expand into Northern Virginia to compete with INOVA, Medicorp, Potomac and - ESPECIALLY - Fauquier to our west.

This is REALLY all about expanding PWHS' Heathcote Health Center and building a new hospital in Haymarket. They would NOT be doing this if there was not money to be made... Money PWHS could make on its own with the right leadership.

Keep in mind:

Novant will expect a return on their 200 million dollar investment and would NOT be risking this amount of money if they weren't sure they'll be able to recuperate it. All of PWHS, meaning local patients and local employees will be beholden to this out of state corporation for each cent of that two hundred million.

The fact that a local 'Board' will still be in place to provide local governance is meaningless when Novant will hold all the purse strings. Like the current Board, it will merely be a formality, a purely ceremonial position and role that does NOT provide true oversight or guidance.

Most importantly, all of our genuinely non-profit neighbors are getting by on their own, and even though Schwartz FAILED at his goal of "merging" with INOVA, the FTC found PWHS should be able to stand on its own. We believe during this process many truths were concealed, ESPECIALLY the fact that Schwartz had no plan for PWHS other than to sell it. The records of the failed, aborted INOVA / PWHS "merger" can be found in the links below.

http://www.ftc.gov/os/adjpro/d9326/080509admincomplaint.pdf

http://www.ftc.gov/os/adjpro/d9326/index.shtm

Pay attention to language such as "and integrate PWHS into..." and "acquisition"... keep this in mind as Novant "partnership" draws nearer. As we've believed and reported from the beginning, "merger" and "partnership" are euphemisms when it comes to PWHS. PWHS will be bought, PWHS will be an acquisition.

Do not forget that this is not CEO Mike Schwartz's first attempt at handing over the reins and selling PWHS.... speaking of which...

A CHALLENGE TO PWHS CEO MIKE SCHWARTZ: EXPLAIN WHY...

Why can our local non-profit neighbors do it on their own and PWHS can't?

Why can Fauquier specifically thrive and do it on their own? Potomac? Medicorp?

Why not respond to the those who believe you've done NOTHING for PWHS other than look to sell for nearly a decade and have had NO vision or alternative strategies?

Why do questions go unanswered when our readers and your employees e-mail the specific address that you have ASKED them to address their queries to?

Some more questions, while we're at it, all inspired by readers' emails and comments:

When quotes like "management attributes the overall financial deterioration of PWHS to the failed merger attempt with INOVA Health System" (http://www.reuters.com/article/pressRelease/idUS217449+25-Nov-2008+BW20081125 ) are out there in the press and your employees ask questions regarding its accuracy, why is there no response?

What is the pre-merger price tag? How much was spent during the past decade on the failed sales to Universal and INOVA?

What was the cost of the consultancy firm whose reports and reccomendations you've used as justification to sell, or "merge" and "partner" as you like to call it? Has this firm EVER told a community hospital NOT to sell?

How do you feel when you think about the 1400+ employees WITHOUT severance packages guaranteed to them?

How do you feel when you think about the fact that you'll receive a 'stay bonus' to help facilitate the "merger" while those who may be "merged" out of a job when the transition is complete will receive nothing, and possibly not even fair warning?

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We'll enjoy your deafening silence on these matters for now...or if you do decide to respond, we sincerely hope you pay for the lawyers and outside PR firm who will likely be co-writing your retort out of your own pocket...


REPORTS FROM THE FRONTLINES....

A Save PWHS reader working in the Patient Access Service department writes:

"I emailed my bosses questions about the merger but was told to wait till our next quarterly meeting. To me that just means that they did'nt have an answer for me, or maybe just not one that they could tell me without causing panics. Me and others have also wrote to the pwhnews address but no one ever writes back. If they think we can sit around and wait for some quarterly newsletter or meeting for answers then theyr'e really wrong, not when they think merger could happen as quick as fall."

This is just one of many great emails from very hardworking, very scared people.

Another employee wrote to tell us that their supervisor claims that anything they read online is really from a union that is just trying to scare people into unionizing. We're waiting for and seeking additional confirmation for this happening in other departments. Make no mistake, we are anti-union and do not think PWHS needs one. PWHS needs leadership that WANTS to LEAD and not just sell out before cutting and running. Being scapegoated as union sympathizers WILL ONLY STRENGTHEN OUR RESOLVE AND FIRE US UP, EVEN MORE.

COMING SOON: A SPECIAL HISTORICAL LOOK AT PWHS AND A REPORT ABOUT KEN SWENSON and ROBERT REGAN, SCHWARTZ'S PREDECESSORS. WE'LL BE LOOKING AT BOTH THE CIRCUMSTANCES SURROUNDING THE TRANSFER OF POWER AT PWHS AS WELL AS THE PAST NINE YEARS AND A TIMELINE OF MAJOR EVENTS UNDER SCHWARTZ'S DIRECTION...

For now, we leave you with a quote from Mr. Schwartz himself, from the November 22, 1999 Prince William Section of the Washington Post in an article titled "Health System Gets New Chief; Hospital's Spirit Drew Candidate" by staff writer Amy Joyce:

"Staying independent is not an easy task, but it's not insurmountable."

One Week Later... More on Severance... Don't become a pre-merger statistic...the email of the week: Fear, Loathing & Paranoia at PWH...Great Comment

Just one week after the Novant partnership revelation, SAVE PWHS and our opinion is going stong.... Some more of our opinion and point of view for you:

THANK YOU!! We've had more than 3,000 hits since going live on Wednesday, March 25th. We've had a lot of great emails, comments and pledges of support. Please see John's comment posted on our last article for some terrific ideas about contacting local government representatives and letting them know how you feel about PWHS being capable of remaining independent with the right leadership and not needing an out-of-state entity taking over. A North Carolina company expecting a return on their 200 million dollar investment is not what PWHS needs.

Some contact info for local representation:

delegatebobmarshall@hotmail.com

MayorCouncil@ci.manassas.va.us

We believe one local job being lost is too many. We believe that it is deplorable to allow PWHS leadership executives who have had NO OTHER PLAN FOR THE ORGANIZATION BUT TO SELL FOR THE PAST TEN YEARS to make a profit out of selling and handing the hospital and the power over more than 1,400 local jobs to outsiders. We believe these execs are the only thing holding PWHS back from enjoying the same success as our neighbors at Fauquier, Medicorp, Potomac and INOVA.

Speaking of execs making a profit and making off with money that PWHS supposedly does not have...

More on Severance... NOT the last word and complete expose that we will soon be presenting, but a relevant point to keep in mind in the coming weeks...

Beware corporate restructuring. A change in the person a "leadership" (yes, we know that term is laughable, at this point) level executive reports to is a loophole that will allow them to leave with a full year of their salary plus benefits. This means that should an exec want to jump ship, all that he or she would need to make this happen would be to have their superior change the chain of command, on paper. This could be done in secret without accountability or oversight, like so much else... just a little disgusting, disturbing PWHS food for thought for you.

One thing that will void an exec's severance package or possibility of a 'Stay Bonus' (and please stay tuned for more on those if you really want to feel ill) is being fired 'for cause', due to misconduct, incompetence, etc. Keeping that in mind, these execs have a great deal to lose. Do not allow yourself to become a patsy, fall guy or scapegoat...

DO NOT BECOME A PRE-MERGER STATISTIC...

As we mentioned previously, dissenters and those that leadership perceive as anti-merger may be targeted. Keep not only this in mind, but also that for everything that might be wrong or dysfunctional at PWHS there may be the need for someone to take the blame for it, especially if an executive focused on their severance has so much to lose if they were to have to take the responsibilty that may be rightfully theirs. Document everything. Verbally address everything you're concerned about, in front of witnesses, and then document that as well. Do not allow yourself to carry someone else's weight at the expense of your livelihood.

Some people believe this type of sabotage has already begun...

E-Mail of the Week:

On Friday, 4/3/09 at 10:36 AM, 10 Point Buck Hunter writes:

"A friend of mine got into some serious trouble for a very trivial matter. Basically he was made responsible for a comment that someone decided was somehow directed at and offensive to management. That is how bad things are. He knows he's being set up to take a larger fall. We all know. When the skeletons start dancing out of closets they'll be able to point at him and there will be something on his record to say he's trouble. Our bosses don't want to get exposed or fired for being the incompetents they are, so naturally they're going to find people to set up to take the hits for all their mistakes so they look OK to Novant and the FTC and whoever else. The result of this atmosphere is that we're all looking for new opportunities and can't believe what is happening. Thanks for trying to get the word out, but our feeling is that it is already far too late."

What kind of "I-Care" values are being exhibited in this situation???? Keep sending us reports from the front-lines!

Comment of the Week, posted on our previous 3/28 article:


Anonymous said...

" The Winston-Salem view can be found here: http://www2.journalnow.com/content/2009/mar/28/novant-enters-virginia-market-through-merger/business/

A line I find of interest: "Our leaders were familiar with their leaders, so when they started looking for a partner, we came up quickly as a possibility," he said. "Most health-care systems want that kind of commitment in a merger."

What kind of commitment is that exactly? A couple of good ol' boys rubbing elbows, making deals behind closed doors? This line clearly implies that this agreement has an underlying personal motive. A few friends helping each other out with consequences for our entire county! Oh, to have friends in high places!


And what about this? "Certainly Novant can offer system infrastructure and billing and collection resources, along with professional resources to improve efficiency and quality of operations."

Ummm... hello!!! PWH already has billing and collections resources. Once upon a time they had their own Patient Billing Office - before Schwartz sold them off. They have an entire department dedicated to capturing appropriate charges and tracking their revenue. What is going to happen to those employees when Novant introduces their "infrastructure"??? Another outsourcing? Are we going to see our friends, families and neighbors have their jobs sold to people in North Caroline?


This whole scheme just doesn't sit right. Maybe Schwartz is just trying to salvage what's left of his retirement money, surely his 401(k) is suffering like everyone else's. But do we really need to ruin the integrity of a community institution so one man can try to save face? I don't think so."


Great comment. Send this one to your local reps, too. Keep reading and posting, everyone.

In closing, just in case there is anyone out there with any doubt whatsoever that PWHS leadership NEVER had an alternative plan other than to sell and put all of its proverbial eggs into the merger basket, please check out the following press release, linked below. Pay close attention to second paragraph, in which you'll find: "management attributes the overall financial deterioration of PWHS to the failed merger attempt with INOVA Health System". Click here for the entire article:

http://www.reuters.com/article/pressRelease/idUS217449+25-Nov-2008+BW20081125


More to come....