The Regional Medical Center’s retirement benefit package compares “very favorably” with peer hospitals throughout the state, hospital trustees were told Tuesday.

Howard Harris, RMC vice president of human resources, said a study of the hospital’s retirement benefit package shows it is competitive with other hospitals in the state, including Palmetto Richland Hospital, Richland Memorial and Providence Hospital.

The RMC was compared to about 10 hospitals in the state, including four hospitals participating in the state retirement system.

“We are in the top echelon with regards to retirement benefits,” Harris said.

Orangeburg County Council members have expressed concerns about the hospital’s benefit package and questioned why employees are not part of the state’s retirement system.

Harris explained with the hospital’s three retirement program options and Social Security, a 35-year employee receives close to 100 percent of the working income he was making upon retirement.

About four hospitals in the study received percentages at 100 percent. Five hospitals were below the RMC, according to the study by Georgia-based The Mercer Group Inc.

A 20-year employee under the same benefit package would receive a little under 80 percent of his working income upon retirement.

“Regardless of years of service and level of income, the replacement ratios are comfortable,” Harris said.

Currently, the hospital has a defined benefit program which is entirely funded by the hospital; a defined contribution voluntary 403B plan where the hospital will match 25 cents on the dollar of what an employee puts in; and a 457 plan voluntarily funded by the employee.

Harris said the hospital also compares well when only looking at non-savers through the hospital’s defined benefit program in comparison with the state retirement system.

But Harris said the hospital is not finished looking at the pension plan.

He said the hospital is looking to improve benefits for lower-paid employees and how to best leverage money to further improve the retirement benefit package for short-term employees.

RMC President Tom Dandridge explained that the hospital’s defined benefit plan was created about 30 years ago and was based on the understanding employees would stay at a place of employment over the long term.

“Those days are largely gone, people are more mobile,” Dandridge said, adding that the hospital is looking at how to better leverage retirement money for its short-term employees, which are a majority of its employees.

“Are we getting the biggest bang out of the people we are talking to? Where should be put our dollar?” he asked.

Dandridge estimates it would cost the hospital about $50 million to join the state retirement plan.

“There is no easy way into the state plan,” he said.

Harris said the hospital is looking at possibly phasing in a health care reimbursement account for early retirees beginning in 2008. The structure and nature of the system will be dependent upon the cost, Harris said.

Currently, early retirees at age 62 with 25 years of service are able to pay the hospital’s group rate for health care insurance until they reach Medicare eligibility at 65. The rate is estimated to be at least $200 lower than purchasing health care outside the RMC, said Harris.

RMC Finance Committee Chairman Dr. Carl Carpenter reminded trustees that in the health care industry, finances can change.

“All these wonderful things we want to do for our employees ... will be based on the current revenue stream and our availability and ability to do just that,” Carpenter said. “It depends on our being good fiduciary agents of this organization.”

Board Chairman Willie B. Owens praised the study’s results as proof the board is being proactive in looking out for hospital employees.

“We have vowed to measure up in terms of providing adequate retirement to RMC employees,” Owens said, adding that the hospital was already looking at the retirement package before Orangeburg County Council had expressed concerns about benefits.

In other business:

n Trustees approved placing a 180-day moratorium on granting additional radiology interpretive privileges to nonradiologists.

Dandridge said the decision to stop granting privileges was made in an effort to ensure that privileges are granted to persons qualified in light of liability issues. The moratorium is not expected to have any significant impact on hospital operations.

n Teri Ficicchy, vice president of patient services, presented trustees with an overview of the hospital’s efforts to reduce the number of patient deaths and injuries outside the hospital’s intensive care units.

Ficicchy explained the hospital’s Doctor 99 program, a rapid-response program where hospital staff attend to the bedside of a “failing” patient, has improved the survival rate of patients and has resulted in a decline in cardiac arrests.

The rapid-response team consists of a physician, critical care nurse and respiratory therapist.

n John Holbrook, vice president of strategy/development, presented trustees with an overview of the hospital’s annual strategy plan, which covers community relations, employee relations, customer service, hospital quality and financial operations.

n T&D Staff Writer Gene Zaleski can be reached by e-mail at gzaleski@timesanddemocrat.com or by phone at 803-533-5551. Discuss this and other stories on-line at TheTandD.com.

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