palomar health board hr committee meeting · palomar health board hr committee meeting october 9,...

PALOMAR HEALTH

BOARD HR COMMITTEE MEETING

October 9, 2013 Palomar Health Corporate Offices 5:30pm (Dinner for Board members & invited guests) 456 East Grand Ave, Escondido CA 6:00pm Meeting 1st Floor Conference Room

Call To Order

Agenda Item Presenter Time

Needed 1. Public Comments (if any) B. Krider 1 min. 2. Information Items 3. Approval of Minutes:

August 21, 2013 *

B. Krider 2 min.

4. Benefits Open Enrollment S. Hogle 15 min. 5. Pension Plan Amendment * S. Hogle 10 min. 6. CEO Compensation & Evaluation Policy B. Turner 30 min. 7. Member Comments (If any) Board Members 2 min.

Final Adjournment Distribution: Bruce Krider, Chairperson Brenda Turner, CHRO Steve Yerxa, Director Gerald Bracht, CAO/PMC Aeron Wickes, M.D. David Tam, CAO/POM Michael Covert, CEO Janine Sarti, Chief Legal Officer Lorie Shoemaker, CNE Steve Gold, Chief Sr. Care Support Svcs. Officer Denise Baker, Secretary Sheila Brown, CAO/PHDC

Alt: Ted Kleiter

NOTE: *Asterisks indicate anticipated action; action is not limited to those designated items.

"If you have a disability please notify us at 760-740-6333, 48 hours prior to the event so that we may provide reasonable accommodations."

BOARD HR COMMITTEE MEETING * WEDNESDAY, OCTOBER 9, 2013 5:30 p.m. (Dinner for Board members & invited guests) 1st Floor Conference Room 6:00 p.m. Meeting 456 E. Grand Avenue, Escondido, CA

Time Page Target CALL TO ORDER ................................................................................................................. ................ ........... 6:00

Public Comments .................................................................................................................. …………..1 …...... 6:01

Information Item(s) ................................................................................................................ ……………. …...... Approval: Minutes * from Wednesday, August 21, 2013 HR Board Meeting .......................... …………..2 ……..4 6:03 Benefits Open Enrollment …………15 .........8 6:18 Pension Plan Amendment * ................................................................................................. …………10 .......15 6:28 CEO Evaluation & Compensation Policy ............................................................................. …………30 .......19 6:58 Member Comments (If any) ................................................................................................. …………..2 …...... 7:00 ADJOURNMENT .................................................................................................................. ……………. . ......... 7:00

Board HR Committee Members

Bruce Krider, MA - Chairperson Aeron Wickes, MD Steve Yerxa, Director

Ted Kleiter – 1st Alternate

*Asterisks indicate anticipated action; action is not limited to those designated items.

NOTE: If you have a disability, please notify us 72 hours prior to the event so that we may provide reasonable accommodations.

Asterisks indicate anticipated action. Action is not limited to those designated items.

Approval of Minutes

Approval of Minutes: August 21, 2013

TO: Human Resources Board Committee MEETING DATE: October 9, 2013 FROM: Bruce Krider, Chairperson

Background: The Secretary of the Human Resources Committee respectfully

submits the minutes of the Human Resources Committee meeting held on August 21, 2013.

Budget Impact: Not Applicable

Staff Recommendation: Approval of attached minutes.

Committee Questions/Suggestions/Requests:

COMMITTEE RECOMMENDATION:

Motion: X

Individual Action:

Information:

Required Time:

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08/21/13 HR Committee

Palomar Health BOARD OF DIRECTORS

HUMAN RESOURCES COMMITTEE 456 East Grand Ave, Escondido CA / 1st Floor Conference Room

August 21, 2013 Meeting Minutes

AGENDA ITEM DISCUSSION CONCLUSION / ACTION FOLLOW-UP

CALL TO ORDER 6:01 p.m. by Bruce Krider, Chairperson

ATTENDANCE Also in attendance were: Steve Yerxa, Dr. Aeron Wickes, Michael Covert, Brenda Turner, Sheila Brown, Lori Shoemaker and Denise Baker Guests: Johnson Aderohunmu, Susan Gray, Brad Krietzberg and Christina Perdomo

NOTICE OF MEETING The notice of meeting was posted consistent with legal requirements.

PUBLIC COMMENTS No public comments were presented.

INFORMATION ITEMS

MINUTES

On a motion by B. Krider, seconded by S. Yerxa, the Board unanimously approved the minutes of the July 21, 2013 meeting as submitted.

Adjourn to Closed Session Pursuant to Government Code Section 54962:

Personnel Exception Informational: No Action Anticipated

Designated Representatives: Brenda Turner (CHRO) and Susan Gray, Employee Labor & Relations

Reconvene Following Closed Session: 7:12 p.m. Meeting reconvened to Open Session Dr. Aeron Wickes offered a motion to present the CNA and CHEU contracts to the regular Board of Directors for their approval. Motion approved by Steve Yerxa.

Form A submitted by Committee Secretary to regular Board for approval at September 9, 2013 meeting.

HR Update

HR metrics are divided into four different categories: Get them, Keep Them, Grow Them and Support Them. Most of the metrics are updated annually so Brenda Turner focused her update on the metrics

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received quarterly; turnover and retention (Keep Them).

Turnover saw a significant bump over the previous quarter. The number of employees who moved out of the area tripled and those leaving for a better job/ better location (mainly Temecula) nearly doubled. Nursing turnover was up as well at 8.45%, though still less than benchmark.

Palomar’s 90 day retention is running at about 95% so we are seeing positive results. In tracking hires retained for 24-months with a high performance rating, 43 were retained and 14 were lost, mainly to moving out of the area. In tracking hires terminated within 24-months with a low performance rating, 11 were terminated and 2 were retained. Of the 2, one received a low performance rating only because .5 was deducted when his BLS was not renewed timely. The other employee was transferred to a different position within the company where they are currently performing below standards. Termination is likely.

Interlink Pathways (Final Update) Brad Krietzberg and Christina Perdomo gave the Board a final update on Interlink Pathways Program. At program’s end, targets were exceeded for the following objectives:

Increase internship opportunities for youth ages 16-24

Assist Health Care Academies (ACA) and other students enter internships and achieve employment

Exceeded presentation expectations with the Speaker’s Bureau. The Speaker’s Bureau exposes students to other health occupations in addition to medicine and nursing.

A six minute video clip created for the West Foundation to showcase the work completed by the Interlink Pathways Program and highlight the

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partnership between Palomar and The Gary and Mary West Foundation was shown.

Moving forward, Learning and Development continues to seek funding opportunities. They are currently working with the West Foundation on the West Health Initiative and the Del Lago Academy Partnership is also officially off the ground. Brad and Christina shared pictures from the August 20th Introduction to Students Day.

Member Comments (If any) None noted.

Final Adjournment With no further business to come before the Board, the meeting was adjourned at 7:32 p.m. by B. Krider, Chairperson

SIGNATURES Committee Chairperson

_______________________ Bruce Krider

Committee Secretary _______________________ Denise Baker

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Informational: Open Enrollment 2014


Motion:

Individual Action:

Information:

Required Time:

TO: Human Resources Committee MEETING DATE: October 9, 2013 FROM: Sherri Hogle BACKGROUND: The annual benefits enrollment period begins with the Benefits Fairs, October

16th

through October 18th

, at the three main campuses. Several vendors will be in attendance to kick

off open enrollment and answer questions from our Palomar Health employees. The online system

will open on Monday October 21st and remain open through Sunday November 11

th. Lab support

will be available at several locations, both day and evening shifts during the open enrollment period.

There are no vendor changes this year but there are a few plan changes. The online system will not

re-open for the Oops period this year. Confirmation statements are emailed from the online system

and post-enrollment confirmation statements will be mailed to all benefited employees home

address.

BUDGET IMPACT: STAFF RECOMMENDATION:

COMMITTEE QUESTIONS:

Open Enrollment 2014 Palomar Health

Presentation to the HR Board Committee

October 9, 2013

Sherri Hogle, Director, Benefits & HR Information Systems

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Benefits Fair Palomar Health on a ROAD TRIP

October 16 – 18 from 7:30 – 4:00 • PMC - North Lawn Patio • PHDC - Graybill • POM - Conference Room E

Navigating the road to great benefits in 2014!

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Open Enrollment

Packet Mailing: October 10, 2013 Enrollment Window: October 21 – November 10

• Online Completion • Lab Assistance • Post Enrollment Confirmations Mailed • No Oops Period

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What’s New & Different

Sharp Health Plan: HMO & POS • Changes

–Premiums: 8.9% increase –Copays –Out of Pocket Maximum –Summary of Benefits –Elimination of Waiver Credit (Medical and

Dental)

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What’s New & Different

CIGNA: Life, Short and Long-Term Disability • Changes

–Employer Premium decrease AFLAC: Supplemental Insurance • Changes

–New Plan: Group Critical Illness (Post-Tax) –Enhancements to Existing Plans

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Questions?

???

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Motion for Approval: Pension Plan Amendment


Motion: X

Individual Action:

Information:

Required Time:

TO: Human Resources Committee MEETING DATE: October 9, 2013 FROM: Brenda Turner, Chief Human Resources Officer BACKGROUND: During union negotiations an agreement was reached that reduced the pension plan contributions in FY14 and FY15 in exchange for a higher contribution in FY16 and part of FY17. In the last six months of the agreement (FY17), the contribution will revert to the current 6% pension contribution. To accomplish this, the pension plan must be amended to provide for these changing contributions. The amendment is being presented to the HR Committee for approval. BUDGET IMPACT: STAFF RECOMMENDATION: Approval of the pension plan amendment

incorporating the changes agreed to during union negotiations.


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AMENDMENT NO. 2 TO PALOMAR HEALTH

MONEY PURCHASE PENSION PLAN

(2010 Restatement)

The Palomar Health Money Purchase Pension Plan, originally adopted effective as of

July 1, 1980 and most recently amended and restated effective as of July 1, 2012 (the “Plan”), is

hereby amended pursuant to Section 12.1 of the Plan, effective January 1, 2014.

Section 3.1(a) is replaced in its entirety by revised section 3.1(a), attached hereto

as “Revised Section 3.1(a), Non-Matching Employer Contributions” and

incorporated by reference.

Except as so amended, all provisions of the Plan shall remain in full force and

effect.

IN WITNESS WHEREOF, this Amendment No. 2 to the Palomar Health Money Purchase

Pension Plan (2010 Restatement) is executed this _________ day of ________________, 2013.

PALOMAR HEALTH

By: _____________________________________

Title:_____________________________________

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REVISED SECTION 3.1(a)

Non-Matching Employer Contributions

3.1 Non-Matching Employer Contributions

a) Effective January 1, 2014 for each payroll period described below, the Employer shall

make Employer Contributions for each Participant who is an Eligible Employee during

such payroll period in an amount to be allocated to such Participant’s Employer

Contributions Account, determined as follows:

(1) For each payroll period commencing on and after January 1, 2014 and

ending before July 1, 2014, the Employer Contribution shall equal four

percent (4%) of the Participant’s Compensation for such payroll period,

except if a Participant has completed fifteen (15) or more Years of

Service, determined as of the anniversary of the Participant’s date of hire,

for each payroll period during this six-month period that commences on or

after such fifteenth (15th

) anniversary, the Employer Contribution shall

equal four and one-half percent (4.5%) of such Participant’s

Compensation for such payroll period;

(2) For each payroll period commencing on and after July 1, 2014 and ending

before July 1, 2015, the Employer Contribution shall equal five percent

(5%) of the Participant’s Compensation for such payroll period, except if a

Participant has completed fifteen (15) or more Years of Service,

determined as of the anniversary of the Participant’s date of hire, for each

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payroll period during this one-year period that commences on or after such

fifteenth (15th

) anniversary, the Employer Contribution shall equal five

and one-half percent (5.5%) of such Participant’s Compensation for such

payroll period;

(3) For each payroll period commencing on and after July 1, 2015 and ending

before January 1, 2017, the Employer Contribution shall equal seven

percent (7%) of the Participant’s Compensation for such payroll period,

except if a Participant has completed fifteen (15) or more Years of

Service, determined as of the anniversary of the Participant’s date of hire,

for each payroll period during this eighteen-month period that commences

on or after such fifteenth (15th

) anniversary, the Employer Contribution

shall equal seven and one-half percent (7.5%) of such Participant’s

Compensation for such payroll period;

(4) For each payroll period commencing on and after January 1, 2017, the

Employer Contribution shall equal six percent (6%) of the Participant’s

Compensation for such payroll period, except if a Participant has

completed fifteen (15) or more Years of Service, determined as of the

anniversary of the Participant’s date of hire, for each payroll period that

commences on and after January 1, 2017 and such fifteenth (15th

)

anniversary, the Employer Contribution shall equal six and one-half

percent (6.5%) of such Participant’s Compensation for such payroll period.

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Informational: CEO Compensation & Evaluation Policy


Motion:

Individual Action:

Information:

Required Time:

TO: Human Resources Committee MEETING DATE: October 9, 2013 FROM: Brenda Turner BACKGROUND: The Board, through the Governance and Audit Committee, requested a policy be developed that would include the framework for evaluating and compensating the CEO. The Governance and Audit Committee requested this be reviewed and discussed by the Board HR Committee. A draft policy has been created for the Board’s consideration. BUDGET IMPACT: STAFF RECOMMENDATION:


DRAFT

CEO EVALUATION AND COMPENSATION

PURPOSE:

To provide a framework and process for evaluating CEO performance and determining

compensation that is consistent with Palomar Health’s mission and is reasonable

compared with fair market value in the industry.

DEFINITIONS:

1. Compensation Committee: The Board will select three individuals to serve as the

Compensation Committee. The Committee will be responsible for evaluating the

CEO’s compensation and making recommendations to the Board for adjustments.

TEXT/STANDARDS OF PRACTICE:

1. CEO Evaluation

a. Annually the Board will evaluate the CEO’s performance against established

target goals.

b. The Board will meet with the CEO to discuss the status of the established

goals and provide any additional feedback. The meeting will be followed by a

written evaluation summarizing the CEO’s performance over the prior year.

c. Goals/expectations for the upcoming year will be shared with the CEO at this

time. The goals will be derived from expectations in financial performance,

strategic planning/growth, patient satisfaction, employee engagement, medical

staff relations, quality of care, community impact, overall leadership and

board relations. Additional goals/expectations may be determined on an

annual basis by the Board.

2. CEO Compensation

a. In order to attract and retain a highly qualified CEO to carry out the mission

of the organization, the Board will select a Board Compensation Committee to

review the CEO’s compensation annually.

b. The Compensation Committee will rely on information from comparable

organizations. This information will be obtained through a third party

consultant at least every two (2) years.

c. CEO compensation will be benchmarked at the 75th

percentile for total cash

compensation. National and regional data will be used as benchmarks with

50% weight on the national data and 50% weight on the regional data. All

hospital data (non-profit, for-profit, governmental) will be used in this

comparison.

d. Annual incentive bonuses may be utilized as part of the CEO’s total

compensation.

e. The CEO benefit package will also be reviewed every two (2) years. The

same third-party consultant used for compensation recommendations will be

utilized to identify a market competitive benefit package.

f. Recommendations of the Compensation Committee will be presented to the

full Board for approval.

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palomar health board hr committee meeting · palomar health board hr committee meeting october 9,...

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