Sentara invests $125 million in pay increases, benefits for employees
Beginning March 17, Sentara will implement a 5% market pay increase for all eligible employees, up to and including the director level.
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Sentara Healthcare, the largest integrated health system in Virginia and one of its largest employers, announced recently it will offer employees $110 million in pay increases and $15 million in benefit enhancements in 2022.
Beginning March 17, Sentara will implement a 5% market pay increase for all eligible employees, up to and including the director level. This increase represents Sentara's second market adjustment in less than 12 months. Employees will also be eligible for a merit increase in May 2022.
The combined increase of 8-9% (market and merit) in 2022 benefits more than 96% of Sentara's 29,000 employees, the system said.
WHAT'S THE IMPACT?
Staffing shortages continue to plague health systems.
Sentara previously gave out monetary "appreciation gifts" in April and December 2021 of up to $3,500 total per team member in recognition of their service to the public during the COVID-19 pandemic.
The company also raised its starting wage to $15 per hour – more than twice the federal minimum wage. Sentara employees also received market and merit increases in May 2021 of up to 8%, valued at more than $50 million.
Sentara employees will see new and enhanced benefits in 2022, the company said. Effective January 1 of this year, employees have access to reimbursement programs to assist with adoption expenses, infertility care expenses, and surrogacy and gestational carrier expenses.
In the coming months, additional benefits will be made available to all team members (full- and part-time), including increased paid time off, paid parental leave, short-term disability eligibility at seven days, enhanced sick-time eligibility, additional support for family caregivers and increased tuition reimbursement to support career advancement.
THE LARGER TREND
Last year, Sentara invested more than $185 million in team-member compensation increases, appreciation gifts and other COVID-related compensation programs. Combined with the newly announced raises and benefit enhancements, the system's added contributions in 2021 and 2022 will total more than $310 million.
Also last year, Sentara Healthcare and Cone Health decided not to move forward with an affiliation that was initially proposed in August of 2020. Leadership from each organization began the work of combining the two entities early in 2021, and it was during that process that leaders from both entities decided that their respective communities and stakeholders required support that was better served by Sentara and Cone remaining independent.
The merger, had it gone through, would have created a health system bringing in an estimated annual revenue of $11.5 billion. No cash would have been involved in the transaction, the idea being that combined reserves and assets would have allowed the organizations to spend more on new projects.
Sentara Healthcare is an integrated, nonprofit system encompassing 12 hospitals in Virginia and northeastern North Carolina. It employs more than 1,200 physicians and advanced-practice clinicians, and 30,000 team members. It operates hundreds of sites of care. Sentara's Optima Health Plan and Virginia Premier Health Plan serve 858,000 members in Virginia, North Carolina and Ohio.
ON THE RECORD
"Investing in our people is always a top priority and in line with our mission to improve health every day," said Sentara president and Chief Executive Officer Howard P. Kern. "I am grateful for their dedication and have been humbled to witness the resilience they've shown over the last two years. These important enhancements will support our people today and into the future as we work together to care for our employees, patients, health plan members and local communities."
"At Sentara, we believe in our people and are proud to be an employer of choice in the communities we serve," said Sentara EVP and Chief People Officer Becky Sawyer. "We continually evaluate our compensation and benefits programs to ensure they reflect team members' needs, contributions and changes in our markets. Investing in salaries and innovative benefits is essential in attracting and retaining the best talent, and providing the care our patients and health plan members deserve."
Twitter: @JELagasse
Email the writer: jeff.lagasse@himssmedia.com
