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Frequently Asked Questions (FAQs)
MeritCare Wheaton Hospital Management Contract/Affiliation
Updated Wednesday, Oct. 14
Is it not true that many physicians are leaving MeritCare?
Our turnover rate has been about four percent. Physicians leave for a variety of reasons including retirement, physical moves and, in some cases, dissatisfaction with their MeritCare employment. MeritCare is actually below the national average for physician turn over; the national average is close to six percent.
Are we not better served if we remain independent? After all, we have been profitable.
The health care environment is changing in such a way that community hospitals will be faced with growing challenges in recruiting and retaining physicians as well as obtaining access to capital. At the same time, community hospitals may consider affiliations at different times: When they are in a position of strength or when they are in jeopardy of not meeting payroll. Wheaton is at the middle of the continuum and thus is able to negotiate with some strength. To wait until we are in a period of weakness leaves us vulnerable to nobody wanting to affiliate with us at that time. Ultimately, in those cases, the community hospital is forced to close.
Will I have to use a MeritCare physician?
No. MeritCare seeks to gain the privilege of serving patients by providing quality care. Patient choice is very important to MeritCare.
Will I be sent to MeritCare Fargo for specialty care or will I have choice as a patient?
Here again, you will have choice.
Could MeritCare take the PERA retirement fund designated for the employees at some point?
The PERA fund is a state fund and is preserved. MeritCare could not tamper with those preserved and protected funds. Wheaton employees can be assured that those funds are separated and protected.
Will MeritCare use this relationship to simply have all patients go to Fargo and reduce WCHMC to a clinic?
MeritCare is committed to the regional delivery of care. MeritCare has continued to grow clinic sites and owned and managed hospitals continue to expand services. For example, at MeritCare Thief River Falls Hospital, they have just opened a dialysis unit. This is designed to better serve the community.
What does the managerial contract mean? How does an affiliation agreement come into this?
If approved, the managerial contract means that Jesse Tischer would become a MeritCare associate, managing the Wheaton Community Hospital and Medical Center. The contract also includes assistance from MeritCare through:
- Increased access to high-quality health care services
- Leverage economies of scale to reduce health care costs
- Increase quality of services through partnerships, including those with a focus on clinical quality
- Leverage positive community image through partnerships with a “high-quality/high-image” provider
- Maintain and increase services provided to our community
- Bring cohesion and consistency to services
- Obtain access to high-quality IT support for upcoming mandates
Once contingencies are met, the affiliation agreement will be executed, meaning that meaning that Wheaton Community Hospital and Medical Center would then become MeritCare Wheaton Community Hospital. All Wheaton employees would become MeritCare employees. MeritCare’s affiliation with Wheaton would provide the stability, financial backing and resources to ensure the long-term viability of quality health care in the Wheaton area.
What happens to PTO and sick time? Do we keep part of the sick time as we transition to only having PTO?
With the management contract, Wheaton employee/providers benefits will not change. If the management contract is approved and an affiliation agreement goes into effect, PTO will transfer one-for-one for Wheaton employees that have PTO saved up. It is undecided what will happen regarding sick time. This would need to be addressed moving forward.
How does MeritCare’s PTO work?
MeritCare provides associates with a Paid Time Off (PTO) benefit which provides flexibility in using time off for personal time, holidays and illness, and also places the responsibility of managing that time with the associate.
The accrual of PTO hours starts the first day of employment. All full-time, part-time, minimum part-time, weekend status and flex status associates accrue PTO on each hour worked not to exceed 80 hours in a pay period. (See Annual PTO Accrual Level in table below.)
Hours of Service
All hours worked, to include overtime hours, are added to the associate's total hours of service (see table below). Movement through the PTO accrual levels is based on hours of service.
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Hours of Service
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Years of Equivalent Full-time (2080 hours/year) Service
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Annual PTO Accrual Level Based on 80 hrs/pp
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Days
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Hours
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0 - 6,240
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0 - 3
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23
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184
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6,241 - 12,480
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4 - 6
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26
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208
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12,481 - 22,880
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7 - 11
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28
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224
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22,881 - 31,200
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12 - 15
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33
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264
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31,201 - 35,360
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16 - 17
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34
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272
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35,361 - 39,520
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18 - 19
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35
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280
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39,521 - plus
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20 plus
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36
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288
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I see that MeritCare’s years of service translate into levels of benefits. What will happen to my years of service?
If the managerial contract is approved and once the affiliation agreement becomes effective (the go-live date), years of service will transfer over to MeritCare.
If we have Leave of Absence (requested by the hospital), will our PTO/Sick time continue to accumulate like they do now?
If staffed to a higher level then needed for patient volumes, other projects or areas for associates to work are found. MeritCare does not ask associates to take a leave of absence. If other projects/areas to work are unavailable, an associate may be asked to take PTO (no more than 48 hours per associate per quarter). MeritCare associates only accrue PTO, if out on paid leave. If using unpaid leave, no PTO is accrued.
How do our benefits compare with Sanford’s?
The Sanford Health Plan is currently the second largest commercial health insurer in South Dakota, covering more than 50,000 lives. Sanford is making an application with the Insurance Commissioner in North Dakota to begin offering group and individual plans. This is subject to regulatory approvals. Once approved and once MeritCare and Sanford have reached a definitive agreement, MeritCare and Sanford can begin discussing possibilities for a Sanford MeritCare Health Plan.
What happens to PERA? Is there a new type of retirement plan? What does it look like?
As of the time of privatization (when the affiliation agreement goes into effect, not the management agreement), our participation in PERA ceases. The Minnesota Legislature has dealt with privatization of municipal hospitals by creating legislation that allows employees of privatized hospitals to receive an “enhanced benefit” from PERA. Representatives have presented and will continue to present information related to these enhanced benefits. The benefits are different based on an employees age and choices they make. Because of this, individual questions are best answered by PERA representatives by calling (800) 652-9026.
MeritCare and Wheaton Community Hospital have agreed to make every effort to ensure that employees of WCHMC are added to the PERA legislation, however it still relies on the legislature. It is worth noting that WCHMC has had an actuarial study completed that shows our employees and the hospital have contributed enough to qualify for this benefit and in light of such information, the executive director of PERA has stated that she has not seen a single request denied.
Once the affiliation agreement goes into effect, Wheaton employees will be eligible to participate in MeritCare retirement programs, including:
403(b)
MeritCare offers the choice to supplement your retirement income through a 403(b) TDA plan with Diversified Investment Advisors.
With a 403(b), you can contribute an amount each pay period to an investment fund of your choice on a pre-tax basis. This means your contributions are withheld from your paycheck before federal and state taxes are calculated, resulting in a tax savings.
Pension Plan
MeritCare helps you plan for the future by providing a retirement plan. MeritCare contributes an amount equal to six percent of your total earnings each year you work 832 hours. An additional amount is contributed for any earnings above 80% of the social security wage base.
What about Home Health?
Once the management contract is approved and once the afiliation agreement becomes effective, MeritCare Wheaton will substitute for Wheaton Community Hospital within the joint powers agreement. Because the joint powers agreement was created as an independent entity with its own board, we don’t anticipate much change within the near future. MeritCare operates home health throughout the region and will be a very good resource for Pheasant County Home Care as we aim to streamline our operations and perform at optimal levels.
If we are MeritCare, why rent space to Fergus Falls Medical Group (Gallagher)? Would Dr. Gallagher be kicked out?
On the effective date of the affiliation agreement, the current arrangement with Dr. Gallagher is not expected to change.
What will happen to those who provide service in our building, but are not employed by Wheaton Community Hospital and Medical Center?
Following the definitive agreement, all contracts will be evaluated. We anticipate therapies, anesthesia and pharmacy will remain intact. However, all contracts will be subsequently reviewed and assessed and not all may be continued.
If the community meetings and the city council vote against the merger, can the hospital still move forward and merge?
If the Wheaton City Council votes “no” regarding the management contract with MeritCare, Wheaton Community Hospital and Medical Center will remain a City owned/operated facility.
How will the Sanford/MeritCare discussions and potential merger affect Wheaton Community Hospital and Medical Center?
At this point, Sanford and MeritCare are working through the process of due diligence, no agreement has been reached. Please visit www.sanfordmeritcare.com to learn more about the Sanford MeritCare discussions.
Is my job going to be moved to Fargo?
If the management contract is approved and the affiliation agreement becomes effective, MeritCare will offer employment opportunities to all Wheaton employees. Wheaton employees will be guaranteed at least their current rate of pay and benefits for one year following enactment of definitive agreement. There are no plans to move positions to MeritCare Fargo. Employees will have opportunities for growth at other MeritCare locations.
Is Wheaton Community Hospital and Medical Center going to become a clinic once affiliated with MeritCare?
MeritCare is committed to a long term hospital presence in the Wheaton community.
We’re hearing positive comments as we continue discussions with MeritCare. Some of the comments we are hearing include:
“I think it is good for our hospital.”
“I am glad that the final change is stalling due to PERA benefits being continued.”
“Actually, I thing the merger may be beneficial in the long run since we are in the middle of the two large hospitals.”
“Good idea. I anticipate changes that will be hard to accept, but we will get through it.”
Thank you for the support and please keep them coming. To let us know what you are thinking, please leave a comment or question in the comment boxes placed around the facility.
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