CEO Blog Reveals Struggles, Requests Employee Suggestions

BOSTON — Know what it’s like to run a large metropolitan hospital and make decisions that affect hundreds of people? It can drive you to blog.

Since 2006, Paul Levy, president and CEO of Beth Israel Deaconess Medical Center, has maintained a blog to “share thoughts about hospitals, medicine and healthcare issues.”

The blog, “Running A Hospital,” made national news in March when Levy candidly explained the hospital’s financial struggles in a deteriorating economy, and projected a $20 million loss for the year. He also detailed cost-cutting measures and asked employees to attend town-hall style meetings to discuss alternatives to layoffs.

“For BIDMC, our hoped-for 2 percent FY09 operating margin (about $18 million) has disappeared,” Levy wrote. “The state has reduced Medicaid payments by over $7 million, our major insurer is paying us less than we had hoped, and research funding has also fallen short by several million dollars. In addition, patient volumes are substantially lower than budgeted as people in the community defer or forego medical visits and treatments.”
It’s not the first time Levy’s openness about the inner workings of his facility has drawn attention in the press. Levy received criticism from other executives, but overall his missives from the summit of power within the structure of the hospital’s operations have been positively met.

“I applaud your refreshing and candid communication especially in regards to your employees and medical staff,” writes Suzanne Dewey, who described herself as a former employee of BIDMC whose department was eliminated before Levy became CEO. “Even though we knew the medical center was struggling, there was very little information that flowed in our direction, so we simply waited in the dark. Our input was not sought and it was an uncomfortable time.”

Dewey’s comments were followed by current employees who posted encouraging words online and have made suggestions to save money or offered to make necessary sacrifices to close the budget shortfall.

Levy says the elimination of scheduled 3 percent pay raises, mandated furloughs and pay cuts could eliminate the need to layoff workers. He announced he would take a 10 percent pay cut and not receive a bonus.

Levy also asked senior vice presidents, vice presidents and the chief operating officer to take voluntary 5 percent pay reductions in addition to eliminating all bonuses for the year. He also set up town-hall style meetings and an Internet chat room so employees could participate in the discussions to close the budget gaps.

“But the bottom line is the bottom line,” he says. “If you don’t like these ideas, please help us come up with others.”

Levy’s blog:  www.runningahospital.blogspot.com