Working Together With Health Care Organizations to Align Compensation with Business Objectives and People Costs

Posted by on May 21, 2011 in Compensation, Financial | 0 comments

By Elliot N. Dinkin, President/CEO
Cowden Associates, Inc.

Overview:

Recent economic volatility has taught us several painful lessons regarding the management of costs.  One very important component of this equation involves, if not the most vital of our assets, our people.  As our economy rebounds, it becomes even more important to manage our people with a comprehensive approach to Total Compensation (base pay, incentive opportunities, health benefits and retirement programs).  When faced with difficult decisions, all too often health care organizations focus on one particular facet versus a total analysis.  Although this may result in some short-term benefits, it may ultimately impact Total Compensation in a negative manner.

Health care organizations must respond to many challenges while managing Total Compensation programs including:

  • Escalating benefits and health care costs
  • Financial management constraints
  • Distinct benefit needs (executives, physicians, nurses)
  • Attraction, retention and engagement of all employees
  • Maintaining a competitive total compensation and benefits program

This article focuses on a strategic approach to address people costs by considering each facet of Total Compensation versus making decisions focused only on one area.  Health care organizations are now obligated to consider changes in their compensation programs based on several recent trends including:

  • Reduced staff
  • Commitment to hire non-smokers
  • Recent medical students are choosing primary care fields versus specialty fields
  • Transition of physicians from private practice to full or part-time employment

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403(b) Retirement Plans: Why a Due Diligence Request for Proposal?

Posted by on Apr 8, 2011 in Financial | 0 comments

Jere Cowden

By Jere L. Cowden, Chairman and Mark C. Muto, Financial Advisor, Cowden Associates, Inc.

The Answer Is Simple:  Requests for Proposals (RFP), Done Right, Result In:

  • Reduced fiduciary risks
  • Lower plan costs
  • Improved service for plan participants
  • More efficient internal operations
  • Setting the stage for improved retirement readiness by plan participants

Executive Summary

The retirement landscape for hospitals has changed dramatically.  Among the factors

Mark C. Muto

driving change is the shift to defined contribution plans as the primary retirement offering and the rapidly changing regulatory environment impacting 403(b) plans, the retirement benefit vehicle of choice among hospitals.  Additionally, board members, senior management and others are being subjected to much closer fiduciary scrutiny. Their increasing awareness of their fiduciary duty is contributing to the increased retention of independent advisors.  A corresponding decrease in the use of agents and brokers is occurring as hospitals seek to eliminate the potential conflicts of interest they present.

 

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