News From Terre Haute, Indiana


February 3, 2014

Hospital responds to questions over pay

Cutting costs, salary assessment result in reductions

TERRE HAUTE — Pay rates have been reduced for Union Hospital physical therapy staff, and some employees have chosen to leave because of changes related to a new management service agreement, a hospital spokeswoman said Monday.

The hospital has entered into a management service agreement with Evansville-based ProgressiveHealth for therapy services.

A story about the new management agreement that appeared in the Jan. 21 edition of the Tribune-Star prompted several calls and emails from people who raised concerns about the changes, including significant pay cuts for physical therapy employees.

Like hospitals around the country, Union must make cutbacks because of the Affordable Care Act and declining reimbursement rates, said Kim Perkins, Union spokeswoman.

As it has worked to cut costs, Union became aware the physical therapy department “was not running efficiently and salaries were out of line with the rest of the country, including large cities,” Perkins said.

Union had an opportunity to work with ProgressiveHealth, which has been in business 20 years and operates in eight states.

The company has worked with Deaconess Hospital in Evansville for the past eight years.

“They come highly recommended,” Perkins said. “ProgressiveHealth showed us our [physical therapy] salaries were out of line, and we had to rightsize things.”  

With the changes, pay rates have been “adjusted to bring those employees in line with the national average, because those pay levels were higher than the national average,” she said.

Also, to improve quality and efficiency, therapists have been given an incentive plan “which would get them about what they were making anyway,” Perkins said.

She believes the incentive plan is “very fair” and it can be achieved. She said she didn’t know the criteria, “but I know it is used elsewhere and people are very happy with it.”

The physical therapy employees are still Union Hospital employees, she said, and full-time employees “have a rich benefit program.”

She did not know how many employees have left of their own accord since the management agreement was implemented, although she described it as “a handful.” Also, she could not provide specifics related to employee salary reductions.

Some of the employees who left “on their own accord” are working again on an as-needed basis, which is part-time with no benefits, she said.

Perkins did say that several months ago, before Union had a management agreement with ProgressiveHealth, “a few physical therapy assistants were laid off” because of the need to cut costs.

She noted that Indianapolis hospitals have been laying off hundreds of employees. In September, IU Health gave pink slips to 800 employees, citing declining reimbursements and fewer people being admitted to the hospital.

Last summer, Indianapolis-based St. Vincent Health laid off 865 workers.

“We’re lucky we have not had to make the changes we’ve seen in larger cities such as Indianapolis,” Perkins said. Union is trying to cut costs “without having to let people go,” she said.

The quality of patient care will not suffer with the changes to the physical therapy department, she said.

“Patients should see better quality and more efficiencies due to the management contract,” she said. “One of the reasons you put people on incentive programs is because people tend to do better when they are on incentive programs.”

Sue Loughlin can be reached at 812-231-4235 or



Text Only | Photo Reprints
Latest News Poll
AP Video
Deadly Avalanche Sweeps Slopes of Mount Everest Police Arrest Suspect in Highway Shootings Drought Concerns May Hurt Lake Tourism Vermont Goat Meat Gives Refugees Taste of Home Obama Hopeful on Ukraine, Will Watch Russians Crew Criticized Over Handling of Ferry Disaster Flamingo Frenzy Ahead of Zoo Construction Malaysia Plane: Ocean Floor Images 'Very Clear' Mayor Rob Ford Launches Re-election Campaign Agreement Reached to Calm Ukraine Tensions Today in History for April 18th Chelsea Clinton Is Pregnant Raw: Bulgarian Monastery Dyes 5000 Easter Eggs Calif. Investigators Re-construct Fatal Bus Cras Raw: Pope Francis Performs Pre-easter Ritual Raw: Two Lucky Kids Get Ride in Popemobile Author Gabriel Garcia Marquez Dead at 87 Diplomats Reach Deal to Ease Tensions in Ukraine Horseless Carriage Introduced at NY Auto Show Captain of Sunken South Korean Ferry Apologizes
NDN Video
My name is Cocaine Lohan Gets Candid About Her Sex List The 2014 New York Auto Show Meet Johnny Manziel's New Girlfriend Chelsea Clinton Announces Pregnancy Funny: Celebrating Easter with Martha Stewart and Friends Man Accuses 'X-Men' Director Bryan Singer of Sexually Abusing Him As a Teenager Man hit with $525 federal fine after he doesn't pay for soda refill Lea Michele & Naya Rivera Feuding? Jabari Parker declares for the NBA draft Singing Nun Belts Out Cyndi Lauper New West, Texas Explosion Video Swim Daily, Throwback Thursday Don't Be A Tattletale: Bad Bullying Tips For Students The trillest thoughts on marijuana "RHOA" Star Charged With Battery Grizzly Bears Get Snowy Birthday Party Weatherman draws forecast when another technical glitch strikes WGN Elizabeth Olsen's Sexy Shoot Bay Area Teen Gets Prom Date With Help From 'Breaking Bad' Star

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
  • -


    March 12, 2010

Real Estate News