The benefit appeared year after year on University Hospital employee insurance and retirement guides. If an employee had 30 years of continuous service, the hospital would foot the bill for a supplemental Medicare policy.
But approximately 90 days ago, new hospital owner Piedmont Healthcare informed a group of approximately 262 retirees the benefit is going away, as a cost-saving measure.
Those retirees have now banded together and on Monday, many signed on to be plaintiffs in litigation demanding the benefit be preserved. They also decided to go to the news media with their story.
“A lot of us could have gone to other places to work because other places paid more money,” said Marjorie Cain, who retired after 43 years working as a nursing assistant in the operating room and other areas of the hospital.
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“Everybody thought if I stay here so many years, this is the package I’m going to have.”
University offered other benefits, such as lunch discounts and free parking, Cain said. The benefits inspired unity among the staff, who were known to help one another out, she said.
Cain said she “cried” upon learning about the benefit cut, for herself and fellow retirees.
“That company was built on our backs. University Hospital wouldn’t have all those awards if it wasn’t for the people that are here,” she said. “Our work ethic was the utmost.”
Retired hospital CPA Robert Taylor, who is helping lead the retiree group, said the group had sought written confirmation of a promise the benefit would be retained. But a letter they were sent made no such promise.
The letter said the benefits would continue for now but were subject to change. “Piedmont will continue to review these benefits regularly and reserves all rights to make future changes,” it said.
Working with attorney Jack Long, the group has drafted a “breach of promise” lawsuit that says basically that Piedmont “didn’t do what they said they were going to do,” Taylor said.
They might also have claims under the Employment Retirement Income Security Act, but a federal case would take much longer, he said.
Through open records requests, they’ve learned that 262 retirees 65 years of age or older with 30 years or more of service are impacted by the decision, he said. Others are impacted as well, such as those who are not yet 65 but with 30 years of service and promised the benefit, he said.
The last few hospital chief executives have had retirement packages for which money has been set aside, including retiring CEO Jim Davis, whose package is three times his annual salary, Taylor said. His last known salary, from a 2019 tax document, was $1.67 million, he said.
Katey Poppell, who retired after 31 years in the hospital Women’s Health Center, said she was “shocked” when Piedmont informed them of the change.
“We weren’t expecting it, and we were told nothing would change for the retirees,” Poppell said.
Retiree Art Evans, who spent 37.5 years as hospital locksmith and sign-maker, said he felt “let down” when he learned the benefit was ending. But after the Monday meeting attended by some 200 impacted by the decision, he was reassured.
“That’s what I say, better together,” said Evans said. “Everyone has a voice, and if we don’t utilize it then they’ll get over, they’ll win,” Evans said.
Julie Hughes, who retired after almost 34 years as a medical transcriptionist, said, “It made me mad” to learn Piedmont planned to cut the benefit.
“That’s the main reason I stayed as long as I did. After you’re there so long, what’s a few more years?” She said.
Retired nurse Robin Petrey said the hospital bills patients for treatment and expects them to pay for services rendered, even if their financial situation changes. Hospital executives are now making the excuse they can no longer afford the benefit, she said.
“That’s the model you’re using. You’re saying, ‘We just can’t afford it; therefore we have to eliminate it,'” she said.
Petrey said hospital administration has had since at least 2005, when it discontinued the benefit for new hires, to plan ways to pay for it and is now targeting senior citizens.
“They didn’t put anything in a protected fund to make sure it was always taken care of. They made us a line item budget every year, and when it got hard, they just crossed through the easiest budget line item, which is senior citizens,” she said.
“I feel like when this decision was made, they were counting on this being a group that would not have the ability to have a voice and that we would be powerless,” Petrey said.
In statement, the hospital said the benefit remains in place while Piedmont compares it with others.
“At this time, existing benefits will remain in place while we continue to evaluate the current total compensation and benefits package among industry standards,” said Elisabeth Wang, executive director of communications and brand building for Piedmont.
