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Penn State Health Aug. 6 town hall panel thanks Massini, announces performance bonus

At the Penn State Health town hall meeting Aug. 6, CEO Steve Massini said farewell, noting it would be his last open forum with employees of the health system he has led since 2019. Earlier, Massini announced his plans to retire effective Tuesday, Oct. 1.

“If there’s any legacy for me, it’s don’t forget our values,” he said. “Remember to be kind to yourself. Remember to be kind to each other. And lastly, just thank you again. It’s been an amazing privilege for me.”

  • View the replay here.

Penn State President Neeli Bendapudi was also a guest panelist and thanked Massini for his service. She reaffirmed her commitment to the health system’s expansion plans and overall strategies.

“What a truly exceptional mentor and leader you are, and of course, you’re a Penn Stater through-and-through,” Bendapudi said to Massini.

Among the key takeaways:

Performance bonus approved

David Swift, senior vice president and chief Human Resources officer, said Penn State Health’s progress on its organizational goal to improve patient experience measurements finished above target. This will result in a performance bonus for all eligible employees, to be paid on Friday, Oct. 18.

“We had one of the best results I’ve seen in my eight years here,” Swift said. “That is certainly a product of all the work that all the folks are doing out there to get that score up.”

Swift also mentioned the new organizational goals for fiscal year 2025. They are online here.

Financial performance improves

Paula Tinch, executive vice president and chief financial officer, reported the health system improved its financial performance as of May. The net operating margin is 1.7%, 0.4% below budget. Net operating revenue reached $3.863 billion, 7.1% over budget. Operating expenses were 4.9% over budget at $3.799 billion.

Among the drivers for the improvements are better-than-budget outcomes in inpatient admissions; discharges; average length of stay; surgical inpatient and outpatient cases; and outpatient emergency department visits and observation cases.

“Last year at this time, we were sitting at a very large loss,” Tinch said. “It’s been a lot for work by everyone to make sure we continue to turn the tide, so that we have the right operating margin available to continue to invest in our patients, our team members and the clinical equipment and everything we need to deliver.”

Employee engagement efforts

Danielle Iovino, director of Human Resources strategy, discussed Penn State Health’s initiatives to improve employee engagement. The health system fell short of that goal in fiscal year 2024.

She noted two key upcoming dates:

  • Aug. 31 ― Employee appraisals are due.
  • Sept. 30 ― Leaders must submit an employee engagement improvement plan to the Press Ganey portal. The plan must focus on communication, diversity and inclusion, with an emphasis on relationships, trust and leadership visibility in those areas.

New health plan available

Megan Erway, director of benefits and absence management, announced that Penn State Health is replacing its PPO Essential medical plan with a new High Deductible Health Plan (HDHP) Select, effective Jan. 1, 2025.

The new plan features medical and prescription drug coverage packaged with a health savings account. In October, employees will choose between the HDHP, PPO Plus ad PPO Premier plans.

Learn more through the Virtual Benefits Center’s dedicated HDHP Select education room.

Diversity efforts earn recognition

Lynette Chappell-Williams, vice president and chief diversity officer, highlighted the health system’s accomplishments in improving diversity equity and inclusion:

  • Forbes magazine named Penn State Health among its Best Employers for Diversity
  • Disability Equality Index listed the health system among its best places to work for 2024
  • The VETS Index recognized Penn State Health for “recruiting, hiring, developing and supporting veterans and the military-connected community.” She also noted the health systems’ Diversity and Inclusion Award recipients and the Inclusion Academy Diversity Champions.

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