VOLUME 4, ISSUE 8 AUGUST 2009 Human Resources In The New World .

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AUGUST 2009VOLUME 4, ISSUE 8Human Resources in the New World - Globalization,Technology and OutsourcingBy Daniel W. FisherChief Executive OfficerEmSource Northwest“Never in the field of human endeavor was so much owed by somany to so few,” was directed to theRoyal Air Force as they fought inthe skies over the English Channelduring WWII. Winston Churchilldid not have human resource professionals in mind when he said it.But the quote did pop to mind asI read through another study suggesting an erosion of the HR toemployee ratio. This study showsan average of 1 HR professionalfull-time equivalent (FTE) per 100employees in 2000 shrinking to 1per 300 today. While such averages don’t reflect every industry andcertainly don’t tell the whole story,there is little to debate that the profession of managing employees inthe United States has experienceddramatic change in recent years.Globalization, technology and outsourcing are the driving forces thatdefine what I call the “New World”of Human Resources.The world may be much flattertoday, but the human capital andorganizational development playing fields are not. Globalizationhas affected every industry in theNorthwest from agriculture tohealthcare. Though most of the political attention has been focusedon manufacturing jobs hoppingfrom one country to another insearch of the lowest cost of labor,our employees here at home oftenfeel the anxiety of workforce globalization. Add to this the pressures of the current economy anduncertainty of healthcare reformand the need for leadership fromhuman resource departments hasnever been greater.There are five primary elements ofhuman resource management thatcollectively define an organization’s strategy to attract, motivateand retain employees. These elements are generally categorized as: Compensation Benefits Performance and Recognition Development and Career Opportunities Work-life balanceEach of these elements of HRmanagement is key to every organization’s success. Properlyintegrating each element into anorganizational strategy is the roleof today’s human resource professional. In the New World, each ofthese elements must be viewed unPlease see Human Resources, P4Inside This IssueHuman Resources in the NewWorld - Globalization, Technology 1and OutsourcingHealthcare Finance: InvestmentRisk Management: Who Should6You Trust?Healthcare Benefits: VivacityLaunched to Help Employers Lower8Rate of Healthcare Cost IncreasesHealthcare Company Profile:Foster Pepper PLLC Announces10New Labor and Employment ServiceHealthcare Administration:Ready? or Not? A First Look at12Washington Hospital SuccessionPracticesHealthcare Law: Employers TakeNote: Federal Benefit Legislation14Impacting Employer-SponsoredProgramsHealthcare Administration: WhyBenchmark? How Medical16Practices Can Use Benchmarking to“Raise the Bar”Healthcare Recruiting: Diving intothe Social Networking Pool? Here’s 18What You Need to Know FirstCareer Opportunities21Plan and Hospital FinancialInformation: Available on theWashington Healthcare Newsweb site at www.wahcnews.com

Letter from the Publisher and EditorPublisher and EditorDavid PeelContributing EditorNora HaileContributing WriterRoberta GreenwoodBusiness Address631 8th AvenueKirkland, WA 98033Contact InformationPhone: 425-577-1334Fax:425-242-0452E-mail: dpeel@wahcnews.comWeb: wahcnews.comTO GET YOUR COPYIf you would like to be added to the distribution, go to our web site at www.wahcnews.com, click on the “subscribe” tab at the top of the page and enter all information requested. Be sure tolet us know whether you want the hardcopy or the web version.LETTERS TO THE EDITORIf you have questions or suggestionsregarding the News and its contents,please reply to dpeel@wahcnews.com.Dear Reader,I’m frequently asked by people in health care topublish their article in the Washington HealthcareNews. Our reader demographic, 6,300 northwesthealth care leaders, appeals to those who want toeducate others or present their command of a particular subject. Providers can also reach referringprovider organizations through articles in the News.We decide which articles to publish based on the following criteria: The credibility and experience of the writer The writer’s ability to deliver a professionally written, grammatically correct article The topic of the article The availability of space The writer’s motivation for having their article publishedWe’re now planning our 2010 article line-up. If your organization isinterested in having an article published in the News then contact me atdpeel@wahcnews.com. I look forward to hearing from you!David Peel, Publisher and Editor-2-

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Human Resources, from P1der the light of globalization, costcontrol and regulatory compliance.HR professionals must use everytactic and tool available to attractand retain a motivated workforce.And, in the process, it would benice if they themselves were afforded the same work/life balancethat they strive to provide their fellow employees.While globalization and the economy have changed the rules of engagement, recent applications oftechnology have brought permanent structural change to the fieldof HR management. What waspieced together across multipleplatforms yesterday is now fullyintegrated. Compensation planning, benefits enrollment, recruiting, training and development,time and attendance, performancemanagement and even successionplanning are components of readily available human resource management programs (HRMS) frommany different vendors at PEPMfees (per employee per month) thathave fallen dramatically in recentyears. Of course, as sophisticatedas these HRMS systems are and assimple as they look in the demo,they do not run themselves. ADP,Oracle, Sage, Ascentis, and thehundreds of other vendors all assume that a great deal of technical knowledge, capacity, time andbudget are readily available forevery prospective client. Rarely isthis the case even if the HR department includes highly skilled andmotivated professionals.Technology is a tremendous tool,and as an HR technology consultant and employee benefits advisor, I watch the software andservice platforms getting betterand less expensive by the month.The results are not quite as aweinspiring as mapping the humangenome, but if you are not usinga very contemporary HRMS platform yet, you are in for a welcomesurprise. A small clinic with nofull-time HR professional on stafftoday can afford very good realtime, web-based payroll, fully integrated HRMS, and a self-serviceemployee portal that was simplynot available to them as recentlyas 2006. Here’s an example of aNew World HR solution. One ofour mid-sized retail clients notonly has a fully-integrated payroll/HRMS system, they solved muchof their multi-location, multi-language HR management issues byconducting a good portion of theirwellness campaign and annualbenefit enrollment confirmationsin English and Spanish via textsand podcasts delivered to employees’ mobile phones!The same phenomenon that hasswept the internet this past year –Web 2.0 – is flowing through theHR profession today. Basically,the internet used to be strictly asource for information – a oneway exchange. That’s Web 1.0.Now the internet is used for socialinteraction. While I still believeTwitter is only for those with shortattention spans (or students tryingto overthrow an Iranian dictator),the exponential growth in users ofMySpace and Facebook have spunoff remarkable innovations in human resources as well. Employeeintranets used to be Web 1.0. Postyour benefit plans and maybe a fewforms and wellness reminders andit would have little to no effect onreducing HR time spent on routinequestions from employees. Today,employee web-portals are 2.0.They include self-serve payrolland benefits inquiries, monitored-4-interaction with other employeesand HR, life event reminders, builtin wellness incentive plans andeven employer brand reinforcement. These company portals, ifdone right, often lead to community building within the organization – not much different thanwhat Facebook and MySpace do.For those organizations that selectthe right vendor and properly traintheir staff, a substantial competitive edge is gained. Return on investment is typically very quickand very noticeable. But by itself,even New World 2.0 technologycan be a drain on HR staff andbudgets alike. There is no line itemon the Income Statement for it, butwe all know the cost of unhealthyand/or under motivated employeesis staggering. This is particularlytrue in healthcare where many employees have hands on patients.Healthy and motivated employeesthat are actively encouraged to participate in reaching the goals of theorganization are very productive inany economy and in any “World.”A well-designed employee portalusing Web 2.0 community building technologies is quickly becoming a necessity for many organizations.As budgets must be balanced andHR departments are asked to domore with less, outsourcing HRmanagement has become muchmore common. In fact, many in myindustry would argue that the NewWorld is an outsourced one. At oneextreme are PEOs (professionalemployer organizations) who enter into “co-employer” agreementswith their clients and take overnearly all administrative functions.Though a typical PEO client is anemployer with 20 employees, theyare quickly going “upscale” andexpanding into new markets in-

Volume 4, Issue 8cluding healthcare. Online payroll,workers comp management andgroup health insurance are theirbiggest draws. BPOs (businessprocess outsourcers) are similar butdo not enter into co-employmentcontracts. These firms integratepayroll, HR and benefits administration for any size organization inany industry. BPOs come in manyflavors, though they typically relyon hosted SaaS (Software as a Service) platforms. BPOs have beenevolving rapidly to gain a footingin the middle employer market (50to 2,000) employees) and offer immediate scalable infrastructure andaccess to capabilities that are usually out of reach for most employers seeking such solutions on theirown.So what does a New World humanresource department look like? Ibelieve the common traits are: astaff that embraces the changesof globalization, technology andoutsourcing as inevitable, leverages technology and consultantknowledge without giving up control, utilizes Web 2.0 platforms tostrengthen relationships with employees and their dependents, andfocuses on strategic rather thantactical solutions.Dan Fisher is CEO of EmSourceNorthwest, an independent employee benefits and human resource consulting firm basedin Kirkland, WA. Dan is a PastPresident of the Washington Society of CPAs and has been practicing as an employee benefitsbroker since 1989. He can bereached at 1-877-550-0088 ordan@emsourcenw.com.Visit wahcnews.com for current career opportunitiesEVERYONE BENEFITSFROM SOUND LEGAL ADVICEOUR BREADTH OF EXPERIENCE keeps our clients focused on theirmission—providing quality care to their patients. Serving health care clients forover 75 years, we provide sound and practical advice to health care professionals,clinics, and institutions in such areas as labor and employment, risk management,regulatory compliance and licensing, business transaction and litigation services.FOR MORE INFORMATION CONTACT JUDD LEES: 206.233.2893SEATTLE . TACOMA . PORTLAND and affiliated offices in SHANGHAI . BEIJING . HONG KONG-5-Practicing law with greater resolve

Healthcare FinanceWashington Healthcare News August 2009 wahcnews.comInvestment Risk Management: Who Should You Trust?By Ward M. HarrisManaging DirectorMcHenry Partnerssimple greed and gravity.My former employer (an old-line,blue-blood New England investment consulting firm) maintaineda “hands off” policy on Bernie andfor good reason. Our analysts’ internal documents made very clearour own opinion of his firm assome kind of hustle. It was toogood to be true and the parts didn’tfit together.We were in Fairfield County Connecticut – the homeland of hedgefunds and investment consultants.It was hard to tell people that wewouldn’t support them as clients ifthey insisted upon using Madoff.IT’S OFFICIAL!Bernard Madoff is now our guestat a Federal institution for the next150 years. The litany of abuseand tales of woe will be told foryears to come. And it didn’t haveto happen. Many knowledgeableprofessionals knew Bernie’s results were unreasonably high andunsustainable. Harry Markopolos,an investment professional in Boston, began his effort to uncover theMadoff scam in 1999.It took almost ten years for theMadoff pyramid to be broughtdown. Not by the Securities Exchange Commission (which ignored Harry’s repeated efforts)but by a market melt-down and redemption demands from offshoreinvestors. The house of cards collapsed upon itself – not through theefforts of our regulators and criminal justice system, but throughIt’s also hard to lose business or berejected for trying to do the rightthing. Ask Harry Markopolos. Better yet, read his memo to the SECin 2005 begging the Commissionto investigate Madoff; or his 2009testimony before Congress. (I havecopies and would be happy to shareif you will send me an email.)How to Avoid the Next Bernie?Usually, the malfeasance of retirement plan consulting and asset management sales is not aboutoutright theft or conversion. It’s amore genteel and gradual leechingof plan and participant assets. Sohow do you avoid the gentle theftof plan assets through ineffective,overpriced or inappropriate planconsulting or investment advisoryservices?1. Competence – Find a personand a firm that has a clearlyproven history of getting thejob done: on time, on budget,-6-on specification for the project or retainer relationship.Make them prove their worth,check references, ask questions. Personal referrals andendorsements are always best,but don’t stop there (remember how adored Bernie wasamong his social and businessnetwork). Over the last twentyyears, our team has managedor participated in over 200 request for proposal (RFP) projects. It’s never easy, but theprocess is critically importantto good decision-making forretirement plan management.2. Trust – Find a person and afirm that you can trust, peoplewho are honest. Not just cashbox honest but also honest withthemselves about their abilitiesand capacities. You might bethe biggest and most complicated new client the advisorwill see in a while. Suggestion: “Trust But Verify.” Confirm that staff resources andtime exist to actually deliveras promised. Remember, it’syour reputation and credibilityat risk.3. Communication – Does thecandidate advisor or vendorspeak in ways you can easilyunderstand? Does he understand your business objectives,preferences and priorities? Ifnot, or if your cultural or personal values (or style) don’t“work” for him, then your potential new relationship mayalready be at risk. Institutional

Volume 4, Issue 8consulting and advisory workis heavily dependent upongood communication and respect.Legal counsel fromboth sides of the brain.We believe a great lawyer is acreative thinker who helps employersbuild and protect their businesswhile empowering their workforce.That’s our approach. We partnerwith clients to develop employmentpolicies and strategies that preventproblems and drive results. AtAter Wynne, we do more than givelegal advice. We give you confidencein your hire power.The Bottom Line?Plan sponsors can protect theirorganizations and participantsthrough objective due diligencein selecting advisors, vendors andasset managers. Ethics, commonsense and the courage of your convictions are also quite valuable.Next month: “DB RetirementPlan Management: Part 3 –“How Do You Measure Success?”Ward Harris is Managing Directorwith McHenry Partners, a national investment consulting firm. Hecan be reached at 1-800-638-8121or ward.harris@mchenrypartners.com.Contact Kathy Feldman, Seattle,klf@aterwynne.com or Stacey Mark,Portland, sem@aterwynne.com.601 Union StreetSuite 1501Seattle, WA 98101206-623-4711P O RT L A N DS E AT T L E-7-M E N LO PA R KS A LT L A K E C I T Y1331 NW Lovejoy St.Suite 900Portland, OR 97209503-226-1191aterwynne.com

Healthcare BenefitsWashington Healthcare News August 2009 wahcnews.comVivacity Launched to Help Employers Lower Rate of Healthcare Cost IncreasesEmployers are increasingly awarehealth status at a faster pace 4. Measure & Report. Resultsthat the health status of their emthan other companies. A Viare measured, analyzed andployees can significantly impactvacity Wellness Advisor assistsreported. Employer scorecardwhat they pay for health benefits.with the process and facilitatesand data analytics are leverdevelopment of the company’saged. Opportunities for conMany employers have hired wellwellnessvisionandfuture.tinual improvement are purness companies to improve theirsued.employee’s health status and found 2. Assess. The company’s wellall they really hired were consulness baseline is established. “We all know that employers areATasteofVivacity:Can Look Liketants who prepared assessmentsCriticalWhatdataYouris Journeyreviewed.Em- struggling with the rising cost ofWe focus on yourployeeunique situationand provided off-the-shelf prodinputandisanalyzeusedyourforcompany’splan mixhealthcare,” said Jim Messina,of interests, goals, current wellness activities, risk factors, and youructs. Vivacity, a wholly-ownedCEO of Vivacity, who brings overemployees’ stagedesign.of readiness to undertake the journey to better health.subsidiary of Ucentris,25 years of healthcareEngage & Screenpart of the Premera famindustryleadership Interview leadership to evaluate readiness, commitment, support, resources,ily of companies, aimsto the new company.and work environment Provide dedicated Wellness Advisor to work with you throughout the process Facilitate development of your wellness vision and cultureto change that.“There is an enormousopportunity for employa g e & Sc r e e nBased in MountlakeEn gAssessMeasure&ers to see real gains byTerrace, WA, Vivacity Establish yourReportcompany’s wellnesstaking advantage ofprovides tailored well- Measure, analyze andbaseline Conductareviewofresultsmeaningful and targetedcritical dataness programs for the reportLeverage employer- Health riskscorecard and datawellness programs forassessmentunique needs of each analytics- BiometricsSolutionsPursue opportunitiestheir employees. Theycontinual- Medical andemployer’s workforce. forimprovementpharmacy claims- Worker’soften need help beyondThey work with theirCompensation- Disabilityjust products - they seekcustomers to create inte- Absenteeism- Presenteeismrigor, credibility and ex Obtain employee inputgrated offerings and taito be used for planperience. That’s wheredesignlored wellness programsVivacity comes in.”based on the readiness Wellness ReadinessScreeningAs s es s Aggregate,integratedreports &recommendations WellnessOriginationAssessment EmployeeInterestSurvey Wellness journey guideIncentive DesignHealth AssessmentOnline information,tools & resources Health Coaching Wellness campaigns& activitiesArchitect & Implementof employers to engage,associated health riskfactors in the workforce,and established patternsin healthcare spending. Work with you to create a customized wellness roadmap that includes developingmeasurable goals Integrate data, tools, activities and resources Design your wellness strategy, program implementation and communication plan Provide ongoing wellness supportWhat kind of gains arepossible?Studies have shownthat more than 75% ofLet’s talk about how Vivacity can help you begin the journey to healthinVivacity’syour workplace. Formore informationcall (877) 276-9953.IntegratedWellnessProcesshealthcare spending isHow does this work?on chronic conditionsHere’s a summary of Vivacity’s 3. Architect & Implement. A including diabetes, heart diseaseWellness Process (see image).customized wellness roadmap and lung disease (US Dept. of1. Engage & Screen. To begin,is created that includes devel- Health & Human Services, Cenleadership of the client comoping measurable goals. Data, ters for Disease Control). Half ofpany is interviewed to evaluatetools, activities and resources chronic conditions are connectedreadiness, commitment, supare integrated. A wellness to risky lifestyle choices and habport, resources and the workstrategy, program implementa- its. When risk factors are reduced,environment. Some compation and communication plan healthcare costs are reduced.nies may support improveis designed. Ongoing wellness “When we look at benefit costsments to their employees’support is provided.and productivity impacts of health,020153 (03-2009)-8-

Volume 4, Issue 8employers see a real need to impact these trends,” said CyndyNayer, President and CEO of theCenter for Health Value Innovation. “Vivacity has the competencies in benefits plans that drive thevalue of health dollars, a neededfocus for this economy. Moreimportantly, the leadership of thenew company is passionate abouthealth improvement. We look forward to sharing their innovationswith the Market.” Vivacity’s program platform is extensive and includes the following: Health Risk Management.This program includes a webportal that provides employerswith robust reporting and sophisticated behavioral changetools. Employees and dependents are provided with a Personal Health Assessment andinteractive, online tools thatlet them track and monitor their health.Health Coaching. HealthCoaching supports and assists employees in identifyingtheir individual needs and setting measurable, personalizedgoals.Tobacco Cessation. Vivacityhas partnered with the American Cancer Society (ACS)to give employees and dependents access to the ACS’shighly successful Quitline .Nicotine Replacement Therapy is also provided for thoseemployees who are medicallyqualified to receive it.Worksite Biometric Screening. This service lets employees know their personal healthindicators - information essential for behavior change and forunderstanding individual riskfor serious chronic disease.Evaluation. Baseline datagathered from the various assessments are reviewed toidentify the programs that willwork best for the employer’sbusiness. Reporting. Aggregate andcustomizable reports are prepared on outcomes, utilization,and employee satisfaction withthe programs.A key member of Vivacity’s leadership team is Dr. Dave Johnson,who has extensive corporate healthexperience in disease management, health risk management,and population health. He has alsobeen involved with launching andmanaging several medical startup companies. HR administratorsand employers interested in Vivacity’s services may call Dr. Johnsonat 877-276-9953.To learn more about Vivacity, visitthe web site at www.vivacity.net.The Attorneys in the Miller Nash Healthcare Practice GroupRobert WaleriusDana KennyMonica LangfeldtLeslie serole@millernash.comGreg MontgomeryCasey MoriartyRobert althcareorganizationsand providers.

Healthcare Company ProfileWashington Healthcare News August 2009 wahcnews.comFoster Pepper PLLC Announces New Labor and Employment ServiceFoster Pepper PLLC, one of thelargest law firms in the PacificNorthwest, recently announced aninnovative new service targeted tohealthcare clients.The new service, called YourEmployment Services (YES!),provides a guaranteed number ofemployment and/or labor relatedhours of legal services per quarterat a fixed price. In addition, eachYES! client receives access to anindividualized extranet.Why launch YES!? Julie Kebler,Member and Labor and Employment Attorney with Foster PepperPLLC explains, “We work withall types of healthcare clients whohave experienced and knowledgeable human resources staff. Theyhave the frequent need to run issues by outside counsel but areconcerned about the predictabilityof costs. With YES! we can offerpredictable costs. They are alsolower overall.”When to Use YES!Most employment/labor legal issues don’t involve litigation. However, many should be discussedwith an attorney.Examples include: An employee handbook needsto be updated or a sample policy is needed. A problem previously discussed with counsel has gonein a different direction. A newstrategy is needed. A union representative is setting up shop in the hospital’scafeteria. What should bedone? Developing strategies for untangling an employee’s ADA,FMLA and Worker’s Compensation claims.What YES! IncludesYES! includes six hours of legalservices per quarter. Clients receive four hours of direct attorneyconsultation with an experiencedattorney on any employment or labor matter. Litigation services areexcluded.It also includes two hours of updated information each quarter onthe Client’s personalized extranet.Extranet services are unlimited.The extranet service includes access to Foster Pepper PLLC sam-ple policies, checklists, listings ofeffective dates of new laws, redflag memos, direct links and alerts.Security is enabled so clients havethe ability to designate tabs ontheir extranet for separate mattersthat only designated persons willbe able to view, discuss online andpost related documents. This limits the use of email.What YES! CostsAccording to Kebler, “A flat feepayment is due each quarter. If aclient does not use the four hoursof direct consultation during onequarter then it rolls over into thenext quarter. The cost per hourof these services are significantly lower than our regular hourlyrates.”To Learn MoreProspective clients can contactJulie Kebler at 206-447-6404 orkeblj@foster.com or contact RosaFruehling-Watson at 206-4477907 or fruer@foster.com to learnmore.Julie or Rosa will show you a sample extranet, provide a full explanation of YES! and present specific cost information.Company SnapshotDescriptionKey ContactsCompany Information (www.foster.com)Julie Kebler 206-447-6404 keblj@foster.comRosa Fruehling-Watson 206-447-7907 fruer@foster.comService AreaThe Pacific Northwest-10-

UNIQUE FITUnique insurance needs require unique expertise.Healthcare organizations face unique risks, which require unique solutions. MedRisk specializes inhealthcare-related risks, such as Reinsurance, Stop-Loss, Errors & Omissions and Directors & Officers Liability.To learn how MedRisk can help manage your risk and transform your business, call one of our representatives today.Washington Robin BrownOregon Steve Couch(425) 649-9876(503) www.medriskllc.comFor 20 years we’ve helped clients inhealthcare achieve recruitment goals.And as a result, we have a strong pointof-view about how it should be done.creating rich, two-way relationships that getyou new patients and turn them into thebest referring partners you’ll ever have.Can we help you?Instead of thinking of them as patients,we think of them as members. OurMe2.0 change process combinesSocial Media with traditional media,Contact Richard at 206.328.5555 ext. 203 www.palazzo.com

Healthcare AdministrationWashington Healthcare News August 2009 wahcnews.comReady? or Not? A First Look at Washington Hospital Succession PracticesBy Cathy GibsonPrincipal and Practice LeaderMoss Adams LLPHuman Capital Consultingcate they are unprepared for thetransition of their key leaders.Role of Plan Documentation andAccountabilityOf all survey respondents, lessthan half acknowledged havinga documented succession plan inplace. Between systems and independent hospitals, 71% of hospitalsystems’ succession plans are documented as compared with 36% ofplans at independent hospitals.Succession planning in Washington is considered a priority by twothirds of the CEOs, Board members and strategic HR Executivesresponding to the recently concluded Moss Adams/WashingtonState Hospital Association Succession Readiness Survey. Howeverthe survey findings also illustrate agap in awareness around the positive impact of formalsuccessionplanningpractices.Roughly one third of survey respondents told us they have clearaccountability in their hospitalfor implementation of the succession plan. In most cases either theBoard or the departing executive istasked with developing the plan.When accountability for implementation of the succession plan isclear, respondents indicate succession planning is included in boarddiscussions and they are currentlyworking on development activitiesfor successor candidates.To further validate the merits ofsuccession readiness, every WAhospital implementing a documented succession plan indicatestheir recent leadership transitionexperience was positive.What are WA Hospitals Doing?A plan is just a plan until it’s implemented. For the hospitals implementing their documented succession plans today, here’s what our2009 survey respondents told us: Their plan includes transitionactivities for the CEO and other C level executives Accountability for their planimplementation is assigned toa dedicated task force Succession is viewed as a priority of their Board (e.g. succession planning has been ontheir Board’s agenda at leastonce in the past 12 months)Individualized

ADP, Oracle, Sage, Ascentis, and the hundreds of other vendors all as- . we all know the cost of unhealthy and/or under motivated employees is staggering. This is particularly . Though a typical PEO client is an employer with 20 employees, they are quickly going "upscale" and