CurrentsWe continue to work on our plan to convert the MUSC Medical Center to an authority. This is a major goal for MUSC. The general assembly and governor approved the Authority Act in June 1999. Subject to the MUSC Board of Trustees’ approval, we hope to make the conversion in July 2000. With the authority conversion, we will achieve additional flexibility for the management and operation of the Medical Center. Under the authority, the Medical Center will be exempt from state procurement, capital improvement and human resources regulations. However, as a public entity, we will be held to high business practice standards.A number of other state academic medical centers have converted to an authority form of governance. Recently, members of the Medical Center administrative team and I met with the administrators of the Medical College of Virginia Hospitals (MCVH) to discuss their experience in converting from a state agency to an authority two years ago. It was helpful to hear about their experience, and we found the issues they addressed to be very similar to the issues we are facing now. In implementing their authority, MCVH established a 99-year master capital lease with Virginia Commonwealth University (VCU). Under the lease, property cannot be sold without permission, but may be renovated or torn down. Also, VCU subleases certain space from MCVH. The cost allocation involved is very detailed. MCVH and VCU have three service agreements, including the Operating Services Agreement for support services, the Clinical Education Research Services Agreement with the School of Medicine, and the Clinical Operation Services Agreement with the practice plan. These agreements help specify service expectations and costs. Upon conversion to an authority, MCVH made changes to human resources policies similar to the changes envisioned for the MUSC Medical Center. MCVH changed only their core human resources policies at the time of conversion to avoid too much change or confusion, and they have gradually changed other policies over time. MCVH employees were given the option to remain in the state retirement plan or convert to a new retirement plan. Aside from the retirement plan, all 4,500 employees were covered by the new core human resources policies, including a new paid time off plan and grievance procedure. The Authority Act enables all MUSC Medical Center employees to remain in the state retirement system. In the future, we expect to look into an alternative retirement plan for those who may be interested, but we will safeguard employees’ participation in the state retirement plan. Similar to MCVH, plans are underway for a paid time off (PTO) leave policy for the MUSC Medical Center. The Me Issues Committee has focused a lot of attention on this matter. No one will lose any accrued annual or sick leave. We expect to offer incentives for prudent use of leave, while providing employees flexibility in using PTO. Our PTO plan will be competitive with similar plans of other area hospitals. The Me Issues Committee will conduct an information campaign in the future, once all details are resolved. Plans also are underway for the MUSC Medical Center to adopt a new grievance policy, which will be substantially similar to the state grievance plan. The Me Issues Committee is almost finished developing final recommendations on this policy, and we will communicate the details soon. The MCVH administrators said there was a lack of understanding about why they converted to an authority, and they urged us to articulate what an authority is and is not. As we move forward, we will continue to discuss the MUSC Authority Act, its implications and details of the conversion plan. W. Stuart Smith
StatLAN lists estimated schedule dates for retirement
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