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MMH CEO: No job cuts, maybe new hires if Massena hospital goes private

Posted 11/6/15

By ANDY GARDNER MASSENA -- Massena Memorial Hospital’s CEO says if they get town board approval to privatize, there will not be any job cuts and positions could actually be added. Meanwhile, a …

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MMH CEO: No job cuts, maybe new hires if Massena hospital goes private

Posted

By ANDY GARDNER

MASSENA -- Massena Memorial Hospital’s CEO says if they get town board approval to privatize, there will not be any job cuts and positions could actually be added.

Meanwhile, a state representative has come out against the move, and the president of MMH’s CSEA chapter says they know very little and are in shock.

MMH announced in a Friday afternoon news release that they will renew their push to get the Town Council to vote in favor of relinquishing municipal control of the institution.

When asked if such a vote would jeopardize jobs, MMH CEO Robert Wolleben replied “No, in fact we see if we convert to non-profit as an opportunity to actually grow jobs.”

They have been pressured by the state Department of Health to pursue affiliations with other health care organizations and they can’t do that as a municipal entity, Wolleben said.

“Staying as a municipal hospital is pretty restrictive given the changing healthcare landscape,” according to Wolleben. “It prevents joining a system. The state has asked several times when are we going to affiliate with somebody.

In light of the recent Alcoa announcement that they will cut 487 positions at one plant and close another, Wolleben says affiliations could bring some new, good-paying jobs to the area.

“We’d like to explore affiliations with other hospitals or systems,” he said. “We expect an affiliate partner to bring things to the community … to grow jobs. It’s one of the only opportunities to actually grow jobs.”

Board of Managers Votes In Favor

In March 2014, the MMH Board of Managers voted 9-0-1 in favor of recommending the Town Council vote to privatize.

Wolleben said the MMH board “reiterated the vote” at their September meeting this year.

Assemblywoman Opposed

Within an hour of MMH’s Friday announcement, Assemblywoman Addie Russell, D-Theresa, released a statement saying she is opposed to the move.

“Now is not the time to entertain the privatization of Massena Memorial Hospital. We have seen strong gains over the last year, and while we do need to review the facility’s long term viability, there is no need to rush through a decision at this time,” she said.

“I would like to see a delay in discussions of privatization until we have a better idea of what we are really looking at regarding Alcoa and so that the community can fully participate in the discussions.”

Her 116th Assembly District includes all St. Lawrence County communities along the St. Lawrence River.

Timing With Alcoa Announcement

Wolleben said the timing of their announcement was not tied in with Alcoa’s decision to all but shutter their Massena operations.

“It’s unfortunate, the timing. We didn’t know what Alcoa was planning,” he said. “We’re looking at our situations separate from Alcoa. It’s a factor for us. We were originally planning to go to the town board meeting Nov. 18.”

“Given the traumatic announcement by Alcoa, Massena and the entire North Country should be focusing 100 percent on keeping Alcoa’s operation open,” Russell said.

Wolleben said some in the community who perceived him to be anti-privatization had the wrong impression.

“I think that was perhaps incorrect,” he said. “We’ve been looking at what the right structure would be … for the past 11 months I’ve been working with the board on it.”

“Privatization should never be off the table totally. It’s not the focus of my effort this or next year,” he said in March. “Our position is … you can’t guarantee anything.”

Union Chief Shocked, Pensions Up In The Air

CSEA Local 887 President Kerrie French said she and the members she represents are in shock and know very little.

“I think everybody is kind of in state of shock with the Alcoa announcement. “To think things could change here as well is scary,” she said Friday afternoon. “No real answers to anything yet. This is all new. They’re giving us possibilities … potential outcomes.”

She would not comment when asked if she believes privatization will jeopardize MMH jobs or if the shift will be a good thing for union members.

“I’m still learning myself,” French said. “The employees are focusing on making sure our patients are taken care of and giving the best care they can. We just want to work together and make this hospital last.”

Wolleben said MMH administration have been talking with town officials and all strata of MMH employees in advance of public notice. He said they are planning employee forums all day Friday.

“There were questions. Obviously it’s a complex topic … our intention was to share where we’d like to go so everybody understands how it’s going to affect them as individuals,” Wolleben said.

One of the flash points of the privatization debate a year ago was longtime employees near retirement who could lose significant portions of their pensions, should MMH leave the state retirement pool.

“We’ve done a fair amount of work on that for the past several months. The board has looked at that and directed me how … we’re going to provide some bridging to minimize the impact on employees near retirement who would be affected by leaving the retirement plan,” he said.

He said they are looking at what he calls “bridge payments,” which would help those close to retirement get as much of their benefits as possible.

“That’s subject to negotiation with the union … our hope is we can get them their full benefit up to age 62, a comparable benefit,” Wolleben said. “We don’t have every question answered.”