Job Security
{I wrote this post before Cook County, in Illinois announced layoffs of up to 100 nurses! Please get your financial house in order!}
Jo Ann BSN wondered why the DON (Director of Nursing for you civilians) had asked her to drop by her office. It was a little unusual, but not unheard of.
She was, after all, a senior nurse in peer review. Good Samaritan Hospital had recently been through their state survey, a grueling experience. But they had gotten adequate, and in a few areas, superior reviews in Jo Ann’s areas of focus.
“Maybe I will be getting a raise!” she laughed to herself. Silently acknowledging the several million bucks the facility lost last year, and knowing it would be awhile before any raises were coming her way…
As she sat down across from the DON, Jo Ann felt sick! The DON looked just like her cat had died. (Jo Ann knew, as did everyone who had been in this office and seen all the stupid silly pictures, how much this boss loved her cat!)
“JoAnn, I am so sorry, but we are cutting back on administrative staff as part of our financial restructuring, and your position was eliminated!”
“But,but, but”….JoAnn stammered. “I have been here almost 20 years…. I have two children in college and a car payment, what am I going to do? Nobody around here is hiring right now. And you know my youngest has Cystic Fibrosis. His meds are outrageous…What will we do?”
“I wish I could help you. I really am sorry. I hope you have a little money saved. And you know there is Cobra for your insurance. And we will be giving you 4 weeks severance. I fought for you-they wanted it to be the 2 week minimum.”
Job Losses and Health Care
Job losses in health care were the lowest of any profession during this most recent severe economic downturn. But for the medical arena, I think the worst is yet to come. With the severe budget deficits on the horizon, and the recent Health Care Act, cuts in reimbursement to hospitals and providers are coming. And those who want success must prepare now. Don’t wait till you are the next “JoAnn!”
Planning for Disaster-Before It Happens
A great American and personal finance blogger, (does that make him a great American personal finance blogger???)-anyway Len Penzo wrote a great article recently about an exercise he and his wife did, which I call “Financial Disaster Planning 101″ (his title was different but I like mine better…) Please check out Len P’s article, but let me review: They, separately just for fun, did an analysis of potential family spending cuts if Len, the family breadwinner, lost his job. What could go, what would stay! Their monthly spending cuts:
- cable TV
- newspapers, magazines, and books
- entertainment spending
- Restaurant meals.
- Housekeeper
- Vet bills
They found, even with cutting monthly spending by 50% or more, their monthly bills would remain way over the amount he would be getting from unemployment. However, because of careful planning, they have enough in savings (rainy day fund) to supplement this short fall for many months. He and his family have a margin-a cushion for when stuff happens. They won’t have to make difficult choices of going without health insurance, moving to a smaller home, or eating cat food. They have lived within their means, avoided living month to month and built up a cushion for emergencies.
Drill Baby, Drill!
Medical Drill
In medicine we do drills! We have tornado drills, fire drills, Code Red, Blue, and Orange drills. In Ob we do shoulder dystocia and post-partum hemorrhage drills. These are done because they work! They eliminate the “deer in the headlights” look that is common in rookies’ eyes when facing life and death scenarios. Jo Ann, in the story above, sadly didn’t have a cushion. Her family had to make difficult sacrifices. Their college kids were going to be on their own, all of a sudden. They couldn’t afford COBRA. That meant signing up for Medicaid to get their youngest’s medicines until they could get back on their feet. And because nobody was hiring in her region, they were going to have to consider moving-but oops the house is upside down…..
The moral of the story
Plan for the worse. At least consider the possibilities. Job loss, divorce, illness, and accidents are so common, and are also the most common causes of bankruptcy. Begin the process of getting control of your spending. Have a financial disaster drill and see what it tells about you!
Reader Comments:
What are your thoughts, have you a contingency plan for the unexpected financial emergency? Photo credit: US Navy c.c.
