Furloughs could prove costly to UNC Healthcare

Chapel Hill, N.C. — UNC Healthcare officials are scrambling to find ways to furlough physicians, nurses and other workers under budget-cutting measures ordered by Gov. Beverly Perdue.

Perdue last month said all state workers needed to take a 0.5 percent pay cut to help balance the state budget, and workers will take 10 extra hours off in exchange for the cut.

"We are all state employees," said Karen McCall, UNC Healthcare vice president for public affairs and marketing. "It's going to be expensive for us."

McCall said the hospitals and clinics the health system operates will need to pay overtime to workers to cover for employees on furlough.

Nurse Pebbles Elsasser said the furloughs will impact patient care.

"There's always going to be sick people. There's always going to be that car accident. There is always going to be that trauma," Elsasser said. "It has to be a lot of rearranging to schedules to give these people their 10 hours."

The health system's financial challenges go beyond furloughs.

State money usually helps offset the losses the system sustains by treating low-income and uninsured patients. The system received $46 million from the state's general fund last year for charity care and graduate education.

"There's a lot of people that can't pay now," McCall said, adding that officials aren't sure how much money they'll get in the upcoming state budget to offset uncompensated care.

UNC Healthcare projects $300 million in uncompensated care next year, up from $270 million this year and $155 million in 2005.

Elsasser said the state's budget woes have become very personal. Her husband is looking for a job and her daughter is recovering from brain surgery, so any cut to her pay hurts.

"These are human beings. It's not just money," she said. "It's almost like you go to your child and you say, 'Guess what? Would you rather have your medication so that you can continue to live every day, or would you rather eat, or do I have gas money to get to work?'

"It feels like we are being discriminated (against)," she said. "The state employees are taking the burden of this for everyone."

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What I don't understand is how all employees at UNC are being furloughed even if they are privately funded through grants. The grant money is earmarked for equipment, salaries, etc. for that employee and cannot go anywhere else. So where is this money going? I think the biotech, pharmaceutical, etc. companies that provide these grants need to lodge a complaint.

Also another example of the furlough that doesn't make any sense. A part-time unchealthcare employee that makes $50/hr doesn't get benefits so no paid time off. However, their base salary is calculated at $25,000, which means $125 will be taken out of their paycheck. But because they don't get PTO, they get the equivalent of the PTO added to their first check in July. Does that mean they will be making money off of the furlough (-$125 + $500 = $375)?

uncpharmer
June 2, 2009 1:04 p.m.

I'm not a CPA but I can do math. Let's suppose a UNC hospital worker is making $20/hour, 40 hours/week, 52 weeks/year. 20x40x52=$41,600 annual salary (before taxes). 0.5% of that is $208, which is what will be taken from this person's salary before June 30th. In return, this person gets 10 hours of paid time off. 10 x $20 (hourly rate) = $200. So, after all the manipulating, the state of NC nets a whopping $8.00 from this person. And, as has been previously pointed out, others may potentially incur overtime to cover for this person's absence. Where's the saving??? Where's the sense?? Who is doing the calculations here??

deal5
May 29, 2009 7:34 p.m.

" How's that "hopey changey" think working for ya? Tired Of Excuses"

Sorry, dude. This problem was created PRIOR to Obama. How's that blamey-whiny thing working for ya?

I don't like the way Perdue is handling this, but Obama has nothing to do with it. Blame the previous Prez for our country's financial woes (remember that the recession started prior to Jan 20th).

happymom
May 29, 2009 1:18 p.m.

Since when does paying OT save money? This makes us better off financially how????

fuzzmom
May 29, 2009 10:37 a.m.

"Got to pay for the Wars! What a waste!"

I agree, Hatchcover. Bad health care and poorly educated children are worth it, as long as we continue to bomb innocent people around the world. (sarcasm)

scientistjo
May 29, 2009 8:52 a.m.