CEO Spiros Hatiras – HUMC Report
There’s a slight improvement in November and the CEO Spiros Hatiras lays out the picture. Sorry for the low volume as the room is midsize and they do not use mikes. (A better camera is coming to pick up the normal voices.)
2008 losses were $17.5 million and 2009 the target was to reduce it to $8.5 million with a recovery plan in place to break even in 2010. They are on target for the year end goal. In addition, they have put in place an across the board 10% cut for all employees and looking to negotiate similar with the unions. This is a serious and impressive effort. Some will say it should have come sooner. MSV would not disagree. The CEO himself is taking a leadership role and is reducing his salary 15%. Awaiting the unions response on the reductions. Questions arose later around a job freeze and layoffs, but the philosophy is to avoid it if at all possible as the recovery plan looks viable.
Payroll for employees is $22 million netting $2.2 saved to the bottom line. Union payroll is $39 million with desired savings of $3.9 added. Overtime and consultant costs are also being reduced with the former benefiting just over a half million in savings: $525,000.
Former CEO Harvey Holzberg is waving his last month of consulting fees for December.
We will verify this amount shortly.
Grant announcements from the State should be coming as soon as next week. HUMC has requested $7 million and we await that announcement.
Mile Square View has requested expense financials for the approximately 50 departments with year over year detailed analysis and projections for 2010. That information will be made available as soon as it arrives.
With the two additions to the Hospital Authority Board, the direction is clearly positive.
More video will be posted today.