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Raleigh, N.C.-Area Hospital Systems Give Bonuses to Their Workers

Posted on: Tuesday, 1 November 2005, 00:00 CST

By Jean P. Fisher, The News & Observer, Raleigh, N.C.

Nov. 1--Employees at two of the Triangle's largest hospital systems -- Duke and WakeMed -- are sharing in their employers' wealth.

Duke University Health System and WakeMed will pay out a total of more than $16 million in bonuses this year to reward workers for their part in the systems' financial success. Both had record earnings in their most recent budget years.

Some consumers may not approve of hospitals spending millions on employee bonuses when health-care costs are rising sharply and many patients are worried about whether they can afford medical care.

But many hospitals think gainsharing can encourage employees to reduce waste, increase productivity and improve customer service. And there's no doubt employees appreciate bonuses.

WakeMed leaders think the "WakeShare" bonus program, established in 1995, helps keep the system's hospitals on New Bern Avenue in Raleigh and in Cary running efficiently. Over the years, employee ideas have helped save tens of millions of dollars, said Debbie Laughery, director of public relations. During the budget year that ended Sept. 30, WakeMed was $10.6 million under budget on expenses, she said.

The bonus program also aims to reinforce WakeMed's customer service. If more than 95 percent of patients rate their experience at WakeMed as "good" or "very good," the pot of money available for bonuses increases.

WakeMed employees learned late last week that the system will pay about $12.3 million in bonuses. They will receive at least 4.45 percent of gross wages, with an average check of about $2,225 before taxes.

The bulk of the bonus money comes from greater-than-expected earnings. WakeMed pays half of earnings in excess of budget targets into the bonus pot. This year, WakeMed earned $71.3 million, far exceeding a goal of $46.5 million, according to preliminary financial results for the year.

The Duke system, which includes Durham Regional Hospital and the former Raleigh Community Hospital, paid about $4.2 million in bonuses. The maximum check was $500 before taxes.

The Duke system is new to gainsharing -- this year's bonuses were a first -- and is still deciding whether to keep the program, said Steve Smith, the health system's chief human resources officer. This year, Duke beat its financial targets but did not quite hit its goal for patient satisfaction.

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Source: The News & Observer

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