SOCIAL RESPONSIBILITY REPORT: NEBO VALLEY HEALTHCARE 1 Nebo Valley Healthcare Social Responsibility Report Mike Daley
SOCIAL RESPONSIBILITY REPORT: NEBO VALLEY HEALTHCARE 1
Nebo Valley Healthcare
Social Responsibility Report
Mike Daley
SOCIAL RESPONSIBILITY REPORT 2
Traditional business practices have long been based on customer
service and creating an ever increasing bottom line. In the past,
making a profit has been the sole purpose of any business. Making
money is the key to surviving in the business world and having a
viable business for a long period of time. This is still true today,
if the business does not make money, it will not survive. In the
business world today, a company has some even bigger responsibilities
than just the creating a bottom line. The company has the
responsibility to create a bottom line that includes more than just
making a profit. It is vital that companies know and understand their
social responsibilities to the world. This social responsibility
includes a bottom line that is successful in profits, people and the
planet. In addition to making a profit, the company must do what is
right for the people and for the environment in which they live.
Corporate social responsibility is defined as "the way a company
acts that enhances society and its inhabitants and is held accountable
for its actions that affect people, their communities and their
environment." (Lawrence & Weber, 2011) Many companies now track their
social responsibility score through the use of rating organizations
and customer surveys, and publish the results in their annual reports.
SOCIAL RESPONSIBILITY REPORT 3
They recognize their investors and customers want to understand how
companies are taking environmentally responsible actions. At Nebo
Valley Healthcare it is no different. They must create a new way of
looking at the bottom line that includes the people that work for them
and the environment in which they do business. (Lawrence & Weber,
2011)
Nebo Valley healthcare is a not-for-profit healthcare
organization that operates both hospitals and clinics. It has been in
business since 1978 and has worked hard to meet the medical and health
demands of the communities in which they serve. It is well known for
its amazing clinical outcomes and has been recognized for its work in
controlling costs and keeping the cost of healthcare down. Healthcare
costs are a very hot topic, both politically and in the communities
that are served by Nebo Valley. They have done an amazing job in
keeping costs low and creating the best care for their patients. The
following is a report that focuses on what they can do as an
organization in developing and growing their social responsibility.
This report will focus on four aspects of their responsibilities and
make recommendations for improvements in each of the four areas. This
report will look at their footprint in the environment, the ethics of
how they conduct business, organizational viability and any legal and
SOCIAL RESPONSIBILITY REPORT 4
regulatory considerations. By looking at all of these areas closely,
and making recommendations, we will work together to have a strong
plan for being socially responsible to those served by Nebo Valley
Healthcare.
Environmental Considerations and Recommendations:
Nebo Valley Healthcare has an obligation to the community to do
what is right for the environment and the communities in which they
serve. They currently are doing some really good things for the
environment such as controlling waste, water conservations and energy
conservation. They have done some amazing things in these areas which
have allowed them to lower costs, but more importantly increase their
contribution to the environment in which they do business. In this
report, we recognize the work that has already been done and will make
some additional recommendations to lower the carbon footprint of Nebo
Valley and increase their commitment to bettering the environment
around them. Nebo Valley Healthcare is committed to fulfilling their
community stewardship, as part of the dimensions of care for the
organization. Part of what they have committed to do, as a healthcare
organization, is to give back to the communities that they serve. This
would include creating a stronger emphasis on reducing their carbon
footprint to the environment. The following are recommendations of
SOCIAL RESPONSIBILITY REPORT 5
how they can increase their efforts in a commitment to the
environment.
The first recommendation is the enhancement of the recycling
program of Nebo Valley. Currently they are doing a small recycling
program that includes mostly the recycling of paper. They have in
place a document shredding program to shred all the documents with
personal protective information on it. This, of course, is a federal
requirement, but included in this plan is the recycling of that
shredded paper. The recommendation is to move to a more advanced and
facility wide recycling plan that would allow them to capture things
such as paper, aluminum cans, plastic, and other recyclable items.
Currently, these items are all being placed in the municipal waste and
being taken to the landfill. This practice is not in compliance with
being socially responsible and doing the right things for the
environment. The recommendation is to create a single stream
recycling program in both the hospitals and the clinics to capture all
the waste that can be recycled, instead of sending this waste to the
landfill. This will be developed and implemented with the help of
their current waste stream provider and set up with specific goals to
achieve. There are many advantages to creating this program, they are
as follows:
SOCIAL RESPONSIBILITY REPORT 6
It is the right thing to do for the environment and the
communities in which we live. They have the ability to redirect
nearly 4 million pounds of waste a year from the landfill to be
recycled.
This program will give a better perception to the community, the
patients and customers as they see their efforts to recycle,
where ever possible.
This recommendation will also lead to an eventual cost savings
for the company. There will be some initial costs for containers
and equipment, but this will lead to a cost savings in the
overall costs of the waste stream. By redirecting at least 23%
of the waste to recycling, they will save money. Most recycling
plants will pay for the waste they receive, but all of them do
not charge for the handling of this waste. That means that Nebo
Valley can take nearly 4 million pounds of waste, which we would
be a cost at the landfill, out of the waste stream costs for the
company. This is an estimated savings of $70,000 a year in waste
stream costs.
In relation to the environment, this would be 4 million pounds of
waste that is reused and repurposed and not places into the
SOCIAL RESPONSIBILITY REPORT 7
landfill. This alone is would be a major step forward in being
more socially responsible.
The next recommendation has to do with water conservation at both
the central laundry and also at two of their older facilities. Water
conservation is an area that has not been looked at very aggressively
in the past. It is any area that needs to be looked at closely to see
where they can make some changes. Most of their facilities are
situated in a desert climate and water is getting scarcer each year.
Nebo needs to do their part in conserving as much water as they can.
Currently the central laundry uses .92 gallons of water per
pound of laundry. Even though this is below the national average,
they can still make some adjustments to what they do to lower this
even more. With the use of some new technology that is available,
they could lower their numbers to .52 gallons of water per pound of
laundry. There are places in the country and that hitting these lower
numbers with the use of this new technology. In talking with the
teams at the central laundry, it is possible for them to implement
this new technology and reduce their gallons per pound of laundry to
reach their goal of .52 gallons, over the next two years. The cost of
the new technology is programmed to pay for itself, in costs savings,
SOCIAL RESPONSIBILITY REPORT 8
in less than 3 years and will bring additional costs savings in future
years, adding to the benefits and advantages of making this move.
The other water conservation recommendation is also to adapt a
new water treatment system in two of the older facilities that
scheduled for an upgrade. By including this new alternative water
treatment system in the upgrade of the facility, they could save an
estimated 105,625 pounds of water a year, at each of the two
facilities. This is a fairly easy fix since it will be completed with
the scheduled upgrade of the facilities boiler rooms. Instead of
keeping the water treatment system they currently use, they can put in
this new alternative water treatment system and conserve a total of
211,250 pounds per year with this switch. By being aware of new
technology and taking advantage of it, they can not only conserve
water but enjoy savings as well. The recommendations made here, for
water conservations, will allow Nebo Valley Healthcare to add to their
commitment of community stewardship in the areas that they serve.
The final recommendation for the environment is for them to
continue their efforts to reduce the carbon footprint through the
fleet vehicles. Nebo Valley has a large number of fleet vehicles,
most of them are smaller box trucks that deliver supplies out of the
supply chain center. In the past several years they have converted 23
SOCIAL RESPONSIBILITY REPORT 9
of their fleet vehicles to natural gas and have reduced their carbon
foot print by 20%. The recommendation is to continue that effort and
replace even more of their existing vehicles to natural gas. Nebo
Valley is scheduled to replace 25 more vehicles over the next two
years. These vehicles have already been scheduled to be taken out of
the fleet and replaced with new vehicles. The recommendation is to
replace them, wherever possible, with vehicles that run on natural
gas. In looking at these 25 vehicles, it is believed that they could
replace 21 of them with vehicles running on natural gas. This would
give is a total of 48 vehicles that run on natural gas and expand
their reduction of carbon footprint of their vehicles to close to 40%.
These recommendations will demonstrate Nebo Valley's commitment to
fulfilling their community stewardship mission, save costs, and help
the environment.
Ethical Leadership Recommendations:
Nebo Valley Healthcare has in place some very strict and straight
forward ethical requirements for its leaders. There are many things that
Nebo Valley does in order to ensure that their leaders and employees are
ethical all that they do. Every day, patients and their families come to
them in times of need, trusting that they will give them their very best
medical care and service. Nebo Valley is committed to honoring their
SOCIAL RESPONSIBILITY REPORT 10
trust by providing excellent clinical care and superior service with the
highest standards of integrity. This commitment applies to every aspect
of their work, and is fundamental to their mission, vision, and values.
Nebo Valley's expectation is that every employee, clinician, trustee,
vendor, contractor, and volunteer, who is a part of their organization,
to understand and follow the rules and requirements that apply to their
work. Even though they are doing a great job in the area of ethics, there
are still things that they can do add to the great work that is already
being done. The following are some recommendations that can lead to
helping them become more ethical in all that they do.
The first recommendation comes in the way of the training of their
leaders. Currently, new managers go through an ethics class when they
are first hired. This class covers the code of ethics and their
responsibility in keeping this code. This is a great class for new
leaders and gives them the opportunity to learn how they should conduct
their work ethically. After this class, there is really not much
training given to existing leaders, as a reminder of what they need to be
doing. The recommendation being made is to have each leader be assigned
to attend this ethics class every two years, as a reminder of their
ethical responsibilities. In the world of healthcare there are so many
regulations that must be met, each and every day, when it comes to
SOCIAL RESPONSIBILITY REPORT 11
patients, their information, and what they do day in and day out. With
so much on the plates of their leaders, it is imperative that they
retrain to their code of ethics every two years as a reminder of all that
we need to be doing, as leaders, in order to be as ethical as possible.
Creating an ethical environment is more involved than creating a
policy and directing employees to be “ethical.” An ethical work
environment is one where it is easier to discern and do the right thing,
than it is to do the wrong thing. This type of culture is not created
overnight, nor is it created by posting a list of the company values on
the wall. It is created by a constant reminder of those values and what
the responsibilities are, of each employee, to perform their work in an
ethical manner. In order to accomplish this, the recommendation is that
every employee has the opportunity to be trained on each of the values of
Nebo Valley Healthcare each year. As part of the online learning plan,
which is sent out each quarter, a new learning module will be developed
for each of the four values of Nebo Valley. By learning the values of
integrity, accountability, trust and mutual respect, they will be taught
how they can use these values to accomplish their work ethically. The
more they are able to learn, and have these values in front of them, the
more likely they will be to follow them. Part of this training will be
to show them the benefits of following the values and the consequences if
SOCIAL RESPONSIBILITY REPORT 12
they chose not to. This recommendation will allow Nebo Valley the
opportunity to create a culture of ethics throughout the organization.
Unfortunately, no matter what is done to create a culture of
compliance and ethics, there will be those who chose not to follow what
is required. One of the issues that Nebo faces is the reporting of such
violations of noncompliance. They train to it, and will train even more
from the recommendations above, but what happens when someone violates
the policy or is unethical in what they do? How does that get reported?
The last recommendation is the creation of what will be known as the
"compliance hotline" This will be a hotline that anyone can call to
report any violation of patient safety or any problem they feel is in
violation of policies of Nebo Valley. This hotline will be open 24 hours
a day, 7 days a week and will allow for an easy way to report violations.
This will be an anonymous hotline, making it easier for staff or patients
to call and report, without the fear of retaliation. This number will be
posted in all areas of the hospital and in the welcome packets for the
patients. Once a problem is reported it will be directed to the
department manager, where the problem occurred, and also to the HR
consultant for investigation. The department manager would then be
accountable to investigate the complaint to see what happened and take
any action if it is needed. The actions will include fixing the
SOCIAL RESPONSIBILITY REPORT 13
situation, holding employees accountable and ensuring that ethical
behavior takes place. This is not a complaint hotline, but a way for the
employees to have the opportunity to share ethical and compliance
violations. This allows them a safe environment to help ensure that when
unethical acts occur, they can be reported and corrected. This hotline
will be staffed by the compliance department and all violations will be
funneled down to the compliance officer at each facility. The compliance
officer is then accountable to follow up and ensure that it has been
properly investigated and there is a resolution when the occurrence is in
violation of any compliance issues.
Organizational Viability:
As a not-for-profit organization, it is often thought of that they are
not in the business to make money. They have to make money, just like
every other business, to stay alive and functioning. Revenue that is
generated must be higher than the expenses incurred. If they did not
make a profit, they would not be able to continue serving the communities
as they currently do. Not-for-profit organizations are formed to operate
for the benefit of the communities they serve. Surplus funds are used to
cover operating expenses and are typically reinvested to further their
SOCIAL RESPONSIBILITY REPORT 14
charitable purposes. So that said, they need to look at ways that they
can be more viable as a company. The recommendations below are made to
help the organization remain viable and continue into the future.
In the business of healthcare, the best and most important resource is
the staff. They bring with them the knowledge, experience and ability to
take the best care of their patients. Without the staff, they could not
operate their business. The first recommendation on the viability of
their company is to continue and expand the live well program that has
been put into place. This program is designed to help their staff live a
healthy and well balanced life. Currently, this program has been
optional for employees to participate in and take advantage of the
education and experience of health care workers. The recommendation is
to make this program mandatory for all staff members and continue to
expand the program in bigger and better ways. This does not mean forcing
the staff to exercise, but encouraging them to live the healthiest lives
possible. This will be done through training, classes, and the
opportunity for staff to have access to this information. The live well
learning modules, that are a part of the quarterly required training, are
currently optional for staff. Last quarter only 28% of the employees
took advantage of these live well learning modules. These modules of
healthy living need to be made mandatory in order to help promote
SOCIAL RESPONSIBILITY REPORT 15
wellness. Once the staff have the information, they are more likely to
make changes in their lives and in the lives of their families. Helping
them to live the healthiest lives possible will cut down on sick calls
due to illness or injury and allow the staff to be at work. It will also
help them to feel better overall, leading to a more engaged staff. In a
business where the staff are your greatest resource, doing things to
promote their wellness will help lead to the overall viability of the
business in the future.
In the ever changing world of healthcare, finding ways to do more with
less is a vital part of doing business. With the onset of the Affordable
Care Act, Obama Care, and Value Based Purchasing, healthcare organization
must be very vigilant in what they do and how they spend their money.
The biggest expense, in the operational budget, is staffing. If an
organization is able to help control the staffing levels, it can lead to
some major cost savings. The recommendations for Nebo Valley is to
develop a staffing best practice protocol, that will allow for each
department to staff at the right levels to meet the needs of the
patients. This protocol will make it possible for the company to staff
appropriately and still meet all the criteria for patient care and
patient safety. These standards will work to get rid of the fluff in the
schedules and staff at the most appropriate levels. As we have seen,
SOCIAL RESPONSIBILITY REPORT 16
there are departments that currently do this very well and are staffing
at appropriate levels. This process would allow for Nebo Valley to set
clear guidelines for staffing, with the use of benchmarking each of the
department against the departments that do it well. Setting a benchmark
for staffing and working to meet that benchmark will allow for Nebo to
save money and be more efficient in what they do. In order to meet the
demands of a reduced revenue cycle through provisional changes to
Medicare and Medicaid reimbursements, staffing at the most efficient
levels will become necessary. Setting these standards and working to
meet them through benchmarking will allow for these changes to take
place.
Looking closely at the Value Based Purchasing requirements through the
Center for Medicare and Medicaid (CMS), it is clear that changes in the
customer service approach for Nebo Valley is needed. These
reimbursements will be based on the hospitals ability to meet the
customer service expectations of CMS, in order to get the maximum
reimbursements allowed for them. If Nebo is not able to meet these
customer service expectations, they stand to lose millions of dollars
each year in reimbursements. Nebo Valley has historically done well on
their patient scores, but as it stands right now they would lose money on
reimbursements. They need to work to improve their interactions with
SOCIAL RESPONSIBILITY REPORT 17
patients, thus increasing their scores. By so doing they will be
eligible for the full reimbursements from CMS. The recommendation is
that Nebo Valley partner with an outside company that teaches staff
members how to interact with patients and works to improve their scores.
There are several options out there but the recommendation is to use the
Studer Group as their partner to help increase patient satisfaction
scores. The Studer Group has a proven record of raising and maintaining
the some of the highest scores in healthcare. This recommendation would
also include the creation of a new department that's sole purpose is
patient satisfaction. This would be both at the corporate level and at
each facility. This new department would work closely with their
partners to improve the patients experience by working with the staff
members. This is not a quick fix by any means, but overtime the scores
will rise and the overall viability of the company will be increased. In
order for the company to stay viable they need the reimbursements from
Medicare and Medicaid and in order to make that happen these measures are
a must. There are healthcare organizations closing up shop all over the
country due to the new provisions in place. Nebo must stay ahead of the
game and this recommendation will allow for that to happen.
Legal and Regulatory Considerations:
SOCIAL RESPONSIBILITY REPORT 18
Nebo Valley Healthcare, as all healthcare companies, are highly
regulated and controlled through many different agencies. They are
regulated by several government agencies and laws that contribute to what
they do and how they do it. Nebo Valley is known for their compliance to
these laws and regulations and does a great job in protecting the health
and personal information of their patients. In looking the regulations
and laws that govern this work, there are several recommendations that
can be made to help them be even more compliant.
The joint commission is one of the biggest regulatory bodies that
control what happens in the hospital. They are one of the bodies that
help with the accreditation of the hospital and allow it to operate and
do business, as required by the government. The regulations put in place
by the joint commission are for the overall safety of the patients. The
joint commission comes every three years unannounced to the hospital.
Often hospitals and caught off guard and not as prepared as they should
be for this visit. The first recommendation for the regulatory
compliance is to create an internal team to work with all of the
facilities to ensure that they are joint commission compliant all the
time. The team would be made up of professionals that work in the quality
department and are very familiar with the regulations and can make sound
judgment when things are not followed. This internal team would travel
SOCIAL RESPONSIBILITY REPORT 19
from on facility to the next to do some "mock" joint commission surveys,
to help ready each facility for their real survey. They will work
closely with the leaders in each department to help them be joint
commission ready every single day. This has worked well in other
organizations and will allow for Nebo Healthcare to be more complaint to
the regulations set forth by the joint commission. This team will be
made up of nurses and environmental personnel to ensure that all aspects
of the joint commission are reviewed with each facility.
In the review of the waste stream, for the recycling purposes, it was
clearly seen that there are some regulatory issues found in the waste
stream. The waste stream is highly regulated by the government and the
joint commission. Only certain things can go into the medical waste it
has to be handled in a very specific way. It was clear that some of the
facilities struggle in meeting these expectations. It is the
recommendation that Nebo Healthcare partner with a company to help handle
their waste stream. The company can help with the education of staff on
the regulations, the packing of the waste and the control of how it is
collected. There are many waste stream companies that handle medical
waste and an RFP could be created to see what company would be best.
Through our reviews it was clear that non medical waste was being placed
into the medical waste and this is due to poor education of staff
SOCIAL RESPONSIBILITY REPORT 20
members. Carelessly placing gloves, paper towels and other items into
the regulated medical waste is a very expensive way to dispose of waste
that can be places in regular trash. With this partnership they will be
able to meet the regulations of the waste stream and more effectively
manage their waste to save money. It is vital that Nebo does something to
help control their waste stream. If issues continue there could be fines
placed on them and their local landfills could refuse to even accept
their waste, if it is not controlled. This partnership can be just a
onetime survey of the waste streams or can go as far as a full partner to
handle all of the waste in the hospital. There are many advantages that
come with this partnership including cost savings, but most importantly
they will help them to be compliant with all the regulations for packing,
storing and shipping of their medical waste.
The last recommendation made for the regulatory considerations is a
creation of a safety committee at each facility. There are countless
safety regulations in the hospital and it is difficult to stay on top of
all of them. This recommendation is a simple fix that will give the
company some lasting results. Under the direction of the safety officer,
a safety committee will be created in each facility to oversee the safety
regulations of the hospital. Each department will have a representative
on the committee and will bring back the needed information to the
SOCIAL RESPONSIBILITY REPORT 21
department. This committee will discuss the many regulations of safety
such as fire codes, egress routes, doors, locks, pull boxes, fire
extinguishers and any other safety regulation. The committee members will
be the "safety champion" for each department and would do any training
that would be required. The representative will conduct a monthly safety
inspection in their department to ensure that the regulations are being
met. They would share any needed changes with the department manager and
report their findings to the safety officer. This is a very cost
effective way to ensure that all departments are complaint with all of
the safety regulations. The safety officer will still need to do surveys
and tours as the expert, but the smaller stuff can be found by each
department's safety champion. This recommendation allows for staff
members to better understand the regulations and for each department to
be ready, at a moment's notice, for an inspection by the fire marshal or
the joint commission.
The recommendations in this report will all work to better the
company's social responsibility and decrease the carbon footprint of the
company. In today's world of business, these are just as important and
any bottom line. By following these recommendations you can increase
your effect on the environment, the people and the profits of the
business.