Saturday, March 25, 2017

Report to the Minister of Health on Executive Compensation for Alberta Health Services Office of the Official Administrator Page 1 Request: This report is in response to your request that I review and address compensation policies for senior leaders at Alberta Health Services (AHS) in my capacity as Official Administrator of AHS to ensure they are appropriate for a publicly funded organization in the province of Alberta. I have completed the review and can advise that: • New policies will be implemented to ensure that there will be no variable pay, incentive pay or pay at risk of any kind as an element of compensation for senior leaders at AHS. • Compensation for senior leaders will be market based, with the market to consist of public sector comparators within Alberta and the Canadian health care sector. • Compensation will be fiscally responsible and adequate to ensure that AHS can attract and retain leaders capable of delivering quality outcomes for Albertans. Executive Summary: • The new AHS senior leadership salary structure: o Has no incentive, variable pay, or pay at risk of any kind – only base pay; o Is based on the median of the national healthcare and Alberta public sector market – no private sector comparators; o Reduces the number of senior leadership salary levels from 6 to 4 levels (which includes the CEO level) consistent with efforts to streamline the structure of the organization; o Will be implemented and be cost neutral in the 2013/14 fiscal year; and o Is fiscally responsible and sustainable while supporting attraction and retention. • Senior leadership positions will be assigned to salary grades after a job evaluation process that will assess size, scope and accountability of roles. • Approximately 15 positions will no longer be assigned as senior leadership positions, resulting in a reduction of the senior leadership payroll. Impacted positions will continue to exist, but will be reassigned from the senior leadership level to the management level. • The use of the title “Vice President” will be reserved for only the most senior positions in the organization that report directly to the CEO. The number of “Vice Presidents” has already been reduced from approximately 80 to 9. Background: • In 2009, shortly after the formation of AHS, the then AHS Board adopted a salary structure for senior leaders that had a number of features: o Salary ranges that were based on market comparators that included private sector organizations o A Pay at Risk program that enabled Vice Presidents and Senior Vice Presidents to earn up to 20% of their base pay depending on achievement of performance goals. Executive Vice Presidents and the CEO were eligible to earn up to 25% of their base pay based on achievement of performance goals. o Pay at Risk was earnable salary that was withheld and then paid at the end of the fiscal year according to the level at which individuals and organizational performance goals were achieved. • At the commencement of the program, approximately 130 senior leaders were eligible for Pay at Risk. Since that time, the number of senior leadership positions has been reduced to approximately 80.

#GOASPIN---All political parties are the same and we should not become brand attached. The philosophy of each political party is to use the voters (us) to get to power. Once in power the political party uses public funds (our money) to subsidise the bigwigs using our cash (think of the $30 million given at the speed of sound for the orphan well program by the Notley). At the same time we have the Notley get us to pay for the liabilities of the richest business sector in Alberta while we are faced with job insecurity and economic problems--there is chatter from the Hoffman that this time around SOMETHING WILL BE DONE about the executive pay at places like AHS. This sort of spin is tiresome. We have been through this in 2014 with the PCs and we know what will happen. The AHS board will produce a document saying the outrageous compensation and perks of the entitled at places like AHS and the Health Quality Council of Alberta--is comparable to the outrageous pay at other similarly sized places. Once this paper is produced as it was in 2014, the GOA will say--look it folks--this pay is not outrageous and the public bank is not being robbed.
Then the minister will say--I have put these salaries under the microscope and found no pathogens. And that will be that.
The exercise in spin is boring and we're tired of it. I imagine these salaries may be comparable to every other organisation' s pay packages but if you don't have the cash how are we to afford these salaries? I respectfully suggest to both Ms. Notley and Ms. Hoffman to put the money where it is needed --into the citizens without jobs and into increasing the salaries of the most poorly paid workers--such as LPNs and PCAs--- who slave at the continuing care facilities and perhaps increasing staff: resident ratios so we can employ more unemployed folks.
This would be a better use of our cash than indulging big oil and executives at the ABCs and we would have that small matter of economic stimulation rather than abject failures.

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Julie Ali
 feeling happy.
19 mins
The honking of the geese woke me up. Its a grey morning outside. The dull flat paint of snow is everywhere and the geese must wonder what instinct forced them out of warm beds elsewhere into the chill of the marsh in Canada.
 Soon I will go pick up Rebecca for art therapy at home. What I do for art therapy is I put a whole range of art supplies and paper plus brushes so that she can do what she wants.
On the last trip she painted almost an entire page blue.
I feel that such art work is going to improve her brain.
Art is good for the brain.
It makes you feel happy. Then the happiness turns to neural stimulation and such stimulation will restore brain function.
This is the theory I am working on.
All art is good so if she wants to do collage I have stuff for her to add to the paintings. I got a page of buttons that I found at a garage sale for a project -they are so cute. I think they were for kids' clothes but they can be used for other craft works.
My mother in law used buttons on my shopping bag that she painted to make the flowers on a tree which she painted on the shopping bag. It is so charming that I don't use the bag but put it by me so I can smile every morning.
The mess on the floor continues. I have a lot of information so it will soon be organized into one document.
Facebook is a forum where I can have honest conversations with people but sometimes my frankness may insult others. I say it like it is. I don't think I am being disingenuous saying that the NDP are poor managers just because they are apparently for the people and are supposed to be the people's party. I point out the dissonance between what the NDP folks say they are and what they do. This is the values business that everyone avoids. I don't think values are negotiable even to work with big oil for profit motives and increased revenues.
The NDP folks need to look at the issues raised by citizens and balance these issues with the work done by corporations so that there is that just society junk that the folks at the Health Quality Council of Alberta keep telling us about.
What just society is it when big oil pollutes and we pay for it? Why is Ms. Notley abjectly handing over the $30 million she got for economic stimulation to fund the orphan well program? If you are going to subsidise big oil don't pretend to us that you are "stimulating" the economy when you are adding to the bottom line of the richest business sector in Alberta that has billions in profits and assets.
Why can't we stimulate the economy by getting the folks who need the money jobs in the public sector since everyone and their dog seems to be working there? I could see more unemployed folks working at the continuing care facilities subsidised by this cash.
But no. The Notley hands the ransom money to big oil so that the public won't label the NDP folks as anti-oil. Talk about a values mix up here. Why not have a backbone and get big oil to clean up after itself? What are we -their cleaning crew and bank?Then to add to this dissonant act we get spin of this sort to spin our heads right round and round:
“As your Premier, I am committed to the Alberta way of doing things,” Ms. Notley explained to the union members. “That means talking straight, keeping promises, and supporting the services families count on to support children, to support parents, and to support grandparents.”

Then there is the small matter of the Hoffman saying to us that yup, it is time after two years to look at executive pay in the AHS system and elsewhere in the health care system so that she can bend a curve that is spiralling out of control. We already went through this spin with the PCs as noted here:
https://www.albertahealthservices.ca/…/ahs-org-exec-compens…
Report to the Minister of Health on Executive
Compensation for Alberta Health Services
This report submitted this 23rd day of January, 2014
John W.F. Cowell, MSc, MD, CCFP, FRCPC
Official Administrator
Alberta Health Services
****
We simply tread through the same bog over and over in Alberta. But you have to admire the willingness of political hires to do this repetitive injury to us.
So the Hoffman parrots the previous PC health ministers to pretend there will be a reining in to the entitlement that will soon get the NDP folks fired in the next election. So what is the point of her spin? It deflects the responsibility from government and the health minister to the puppet board she has set up like the Tories did before the NDP--for this purpose of being the target of our complaints.
Such a neat way to tell the AHS board to pick up its socks and get ready to be blamed by the public for outrageous compensation packages for no work in the executive staff other than entitlement and arrogance. Let me give you one example. I complained to ethics and compliance at AHS and was summarily told off for my cheek. Who was I to complain to the bigwigs at ethics and compliance? I was surprised. What the heck? What is the job of ethics and compliance? It should be to listen to citizen complaints and directly deal with us.
We should not be fobbed off to the Patient Relations folks who were under Verna Yiu who did nothing to help us because their job like all the other executive staff seems to be all about how to respond to media and government about problems faced by citizens like eviction instead of helping us. Mind you there isn't much AHS can do about evictions since this is the role of the GOA and the GOA has put continuing care into the hands of private businesses for the most part who do not have to follow the requirements of the Residential Tenancies Act but can evict folks as they see fit.
The PCs never bothered with the citizens or their problems because all they were concerned with was cover up. Sure they made a ton of legislation and offices but all these entities simply whitewash the problems of citizens and keep the issues out of the public eye. I had thought with the NDP folks that the secrecy and poor culture of the GOA would dissipate but this has not happened. We still have the spin of reducing salaries and such like that we will have with future political parties. Nothing is really going to change until the market collapses.
In other words, no one in government is going to decrease anyone's pay and we are stuck with increasing debt and subsidy of everyone. This will continue because government is not responsible and we are a pocket that is always there to be emptied.
The citizens will become increasingly dissatisfied with the values gap and vote out the NDP and then we will have the Wildrose who will also do the same junk. Since this is the case, I don't see any difference between any of the political parties and our strategy as good citizens in a democracy should be to change the political parties every single term. This way there may be a chance that things might change because we might eventually get a party that fixes this rigged system.
I say rigged system. We are captive to the government requirements for cash and we are taxed for endless entitlements of the elite. We are the only ones to milk. The bigwigs in corporations and in industry like big oil get the perks that we pay for--the grants, the subsidy and the free cash as in the case of the $30 million that showed you all the values gap in the NDP folks.
The entire system needs an overhaul but with folks who support brands of parties like cereal brands it is pretty hopeless. In any case, the best one can do is to not get into this situation, work as independently of government as you possibly can and take care of your own families. I doubt this junk that is DeMockracy will end until the market collapses and the debt that is carried like two humps on each camel of a citizen becomes too staggeringly big for us to do it any longer. And then what? I don't know. It will be interesting.
Now what was this post about? Values. None of the political parties have these values. We do. Let's keep our values intact. And let us keep changing political parties and not be brand attached because political parties don't serve us, the government serves political parties but not us and really the entire public service is me first and user friendly for the adept users. And what are we? Cows to be milked.
And by the way -that $30 million which we just paid is an small instalment on the major liability that big oil in Alberta has not taken responsibility for and will walk away from leaving a legacy of complete disarray in finances when the party is over.
Which it is.
https://thetyee.ca/News/2017/02/13/Inactive-Wells-Alberta/
Alberta’s Growing $30-Billion Liability: Inactive Wells
Compared to other jurisdictions, province lets oil firms off the hook when it comes to cleaning up.
By Andrew Nikiforuk 13 Feb 2017 | TheTyee.ca
Andrew Nikiforuk is an award-winning journalist who has been writing about the energy industry for two decades and is a contributing editor to The Tyee. Find his previous stories here.
This coverage of Canadian national issues is made possible because of generous financial support from our Tyee Builders.
While most North American jurisdictions require companies to clean up and restore non-producing oil and gas wells in a timely fashion, Alberta doesn’t, says the report by University of Alberta economist Lucija Muehlenbachs, also a visiting fellow at the U.S. think tank Resources for the Future.
Most jurisdictions require companies to shut down and clean up wells that have been inactive for specified periods. Alberta allows companies to say wells are “suspended” indefinitely.
“Alberta is one of the more lenient jurisdictions as it has no limit set on the length of time a well can remain suspended,” explains Muehlenbachs in a briefing paper released last week for the School of Public Policy at the University of Calgary.
Big Oil asks for cleanup subsidies
As conventional oil production declines across Western Canada, the problem of inactive wells has grown exponentially. There are 20,000 non-producing wells in Saskatchewan and 10,000 abandoned or suspended wells in British Columbia.
In 2012 Saskatchewan’s auditor general warned taxpayers that government legislation “does not address the timely cleanup of inactive wells and facilities,” and that “there is a future risk that a portion of the $3.6 billion” cleanup bill “may be borne by the ministry and hence Saskatchewan residents.”
Many companies won’t have “sufficient financial means to clean up their wells and facilities or they may not be identifiable or locatable when cleanup is needed,” added the report.
Since then the problem has worsened. Saskatchewan’s latest orphan wells annual report found that “total industry liability is increasing more rapidly than total industry asset value. While industry activity is increasing, so is the number of mature wells reaching the end of their economic life, adding additional liability to the system over time.”
Similar problems are being encountered with B.C.’s liability management program as “the number of at-risk producers and unsecured liability” increases.
As a consequence of Saskatchewan’s lax policies, Premier Brad Wall asked the federal government in 2016 for $156 million to clean up a fraction of the problem: 1,000 of some 20,000 non-producing wells in his province.
But critics said that request violated the principle that polluters should pay for their cleanup costs.
The “polluter pays” principle requires that the oil industry be the key entity paying for work to carry out such cleanup work, argued Darryl McMahon, the principal director of RestCo, a firm concerned about energy sustainability and resilience, in a letter to the federal government.
“Unfortunately, the oil industry have not developed effective, affordable approaches for doing so, or this issue would have been resolved in the past.”
The Petroleum Services Association of Canada has also asked federal taxpayers for a $500-million handout in order to clean up “more than 75,000 inactive wells requiring downhole wellbore abandonment and surface reclamation.”
READ MORE
A failed policy
Muehlenbach’s study is not the first to draw attention to Alberta’s failed policy.
One recent research paper concluded that the province must not only introduce timelines for abandonment and reclamation, but also collect upfront security bonds from industry as well as create a legacy fund, jointly funded by industry and government.
Reports from Ecojustice have also documented the problem.
“In the absence of such regulated timelines, Albertans may be left to grapple with an ever-increasing number of inactive wells and the environmental and safety risks associated with them for another 25 years — to say nothing of eroded trust in the [regulator] or future regulatory bodies,” concluded Barry Robinson, a lawyer with Ecojustice.
The state of Colorado has set regulated timelines for well abandonment and reclamation and, as a result has one inactive well for every 18 active wells (2,947 inactive wells; 49,732 active wells) as of 2014, Robinson noted. [Tyee]


Compared to other jurisdictions, province lets oil firms off the hook when it comes to cleaning up.
THETYEE.CA

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https://www.albertahealthservices.ca/assets/about/expenses/ahs-org-exec-compensation.pdf
Report to the Minister of Health on Executive Compensation for Alberta Health Services This report submitted this 23rd day of January, 2014 John W.F. Cowell, MSc, MD, CCFP, FRCPC Official Administrator Alberta Health Services


Report to the Minister of Health on Executive Compensation for Alberta Health Services Office of the Official Administrator Page 1 Request: 

This report is in response to your request that I review and address compensation policies for senior leaders at Alberta Health Services (AHS) in my capacity as Official Administrator of AHS to ensure they are appropriate for a publicly funded organization in the province of Alberta. I have completed the review and can advise that: • New policies will be implemented to ensure that there will be no variable pay, incentive pay or pay at risk of any kind as an element of compensation for senior leaders at AHS. • Compensation for senior leaders will be market based, with the market to consist of public sector comparators within Alberta and the Canadian health care sector. • Compensation will be fiscally responsible and adequate to ensure that AHS can attract and retain leaders capable of delivering quality outcomes for Albertans. Executive Summary: • The new AHS senior leadership salary structure: o Has no incentive, variable pay, or pay at risk of any kind – only base pay; o Is based on the median of the national healthcare and Alberta public sector market – no private sector comparators; o Reduces the number of senior leadership salary levels from 6 to 4 levels (which includes the CEO level) consistent with efforts to streamline the structure of the organization; o Will be implemented and be cost neutral in the 2013/14 fiscal year; and o Is fiscally responsible and sustainable while supporting attraction and retention. • Senior leadership positions will be assigned to salary grades after a job evaluation process that will assess size, scope and accountability of roles. • Approximately 15 positions will no longer be assigned as senior leadership positions, resulting in a reduction of the senior leadership payroll. Impacted positions will continue to exist, but will be reassigned from the senior leadership level to the management level. • The use of the title “Vice President” will be reserved for only the most senior positions in the organization that report directly to the CEO. The number of “Vice Presidents” has already been reduced from approximately 80 to 9. Background: • In 2009, shortly after the formation of AHS, the then AHS Board adopted a salary structure for senior leaders that had a number of features: o Salary ranges that were based on market comparators that included private sector organizations o A Pay at Risk program that enabled Vice Presidents and Senior Vice Presidents to earn up to 20% of their base pay depending on achievement of performance goals. Executive Vice Presidents and the CEO were eligible to earn up to 25% of their base pay based on achievement of performance goals. o Pay at Risk was earnable salary that was withheld and then paid at the end of the fiscal year according to the level at which individuals and organizational performance goals were achieved. • At the commencement of the program, approximately 130 senior leaders were eligible for Pay at Risk. Since that time, the number of senior leadership positions has been reduced to approximately 80. • In 2013, AHS cancelled the Pay at Risk program for senior leaders for the approximately 80 senior leaders who remained eligible. Report to the Minister of Health on Executive Compensation for Alberta Health Services Office of the Official Administrator Page 2 New AHS Compensation Policies: 1. Senior Leadership Salary Grids o All pay at risk is eliminated from the senior leadership salary structures. o The number of senior leadership salary levels will be reduced from 6 levels to 4 levels. o The salary levels reflect the median (50th percentile) salary levels paid to comparable positions in the defined market. o All senior leadership employees will be compensated within the salary range in which their role is allocated, and in line with their performance and qualifications. Former Senior Leadership Salary Structure The former AHS salary structure had 6 levels, with salary ranges that expressed maximum potential earnings inclusive of pay at risk. The CEO level did not have a range but only a rate that applied to the incumbent. While the ranges were established based on the median of the market, the market included some private sector comparators. Salary Grade Salary Range Structure (Total Cash including Maximum Pay at Risk) CEO -- -- $580,000 Base Salary -- $725,000 Including Max Pay at Risk Minimum P33 Midpoint P66 Maximum EVP $375,500 $451,965 $500,000 $546,425 $643,750 SVP1 $283,200 $358,045 $396,000 $432,890 $510,000 SVP2 $214,800 $271,430 $300,000 $328,055 $386,400 VP1 $171,600 $216,745 $240,000 $261,890 $308,400 VP2 $146,400 $185,340 $205,200 $224,015 $264,000 Revised Senior Leadership Salary Structure In establishing the new senior leadership salary structure care has been taken to ensure that only those positions required for an organization with the size, scale and scope of AHS are included, both to ensure financial sustainability and efficient, effective, quality care focused decision making. On that basis it is anticipated that approximately 15 positions of the current 77 will no longer be part of the senior leadership structure and will be reallocated to management levels. Consistent with the need to streamline the leadership and decision making structure, the new salary structure for senior leaders has been simplified, with number of levels reduced to 4. The CEO level will also now have a range within which a CEO can be paid. With the elimination of Pay at Risk, the maximum individual earning potential in the new range structure is less and the overall cost of the range structure will be reduced when compared to the prior range structure. Report to the Minister of Health on Executive Compensation for Alberta Health Services Office of the Official Administrator Page 3 Salary Grade Salary Range Structure Developmental Entry Rate Entry Rate Job Rate High Performance Rate CEO -- $480,000 $600,000 $780,000 Senior Leader 3 $280,000 $320,000 $400,000 $515,000 Senior Leader 2 $231,000 $264,000 $330,000 $425,000 Senior Leader 1 $168,000 $192,000 $240,000 $257,000 The new salary ranges have four administrative points: Developmental Entry Rate • minimum starting salary for employees who do not meet full job qualifications Entry Rate • minimum starting salary for employees meeting minimum job qualifications Job Rate • normal maximum salary achievable by consistently good performers High Performance Rate • maximum salary achievable by consistently high performers Once a senior leader’s starting salary is established, salary increments can be earned to progress through the salary grid based on merit and proven track record of performance. It is anticipated that a significant majority of individuals will be paid somewhere between the entry rate and the job rate. 2. Senior Leadership Titles • A revised titling convention will provide appropriate titles for AHS senior leadership roles. • The use of the title “Vice President” will be reserved for only the most senior positions that report directly to the CEO. (Other titles that include “Vice President” such as Senior Vice President or Executive Vice President will not be used). • The number of positions with the title “Vice President” has already been reduced from 80 to 9. 3. Market Assessment A market assessment has been conducted to ensure the Senior Leadership Salary Structure is positioned at the median (50th percentile) of the public sector market that is defined as: • The national healthcare market; and • The Alberta public sector market. Examples of comparator organizations that have been included in the market assessment include: • Alberta Public Sector: Government of Alberta, University of Alberta, University of Calgary, Workers’ Compensation Board • Canadian Health Care Sector: Saskatoon Health Region, Regina Qu’Appelle Health Authority, Vancouver Costal Health Authority, BC Provincial Health Services Authority, University Health Network, Hamilton Health Sciences, The Hospital for Sick Children. The market assessment has considered the size and scope of AHS. While the median (50th percentile) of the market has been targeted, in establishing the salary ranges a conservative approach has been Report to the Minister of Health on Executive Compensation for Alberta Health Services Office of the Official Administrator Page 4 taken in determining the “job rate” for the positions to ensure that AHS does not “lead” the market, while at the same time ensuring the range allows for the attraction and retention of effective leaders. 4. Implementation There will be no across the board adjustment to base pay for senior leaders to offset the elimination of Pay at Risk. Each senior leadership position will be placed in the appropriate salary grade (SL3, SL2 or SL1) following a job evaluation that will consider the size and scope of roles, and accompanying accountabilities and impacts. When this exercise is completed, it is anticipated that the number of senior leadership positions will be reduced by 15 to approximately 65. Once the level of the job has been determined each individual senior leader will be placed on the appropriate step on the salary grid based on a case by case assessment of each incumbent. The following criteria will guide that assessment: o The performance of the senior leader in relation the expectations for the position; o The qualifications of each senior leader compared to the requirements for the role; o The experience and service of that senior leader relative to their peers; and o The market positioning of similar roles and the availability of this skill set in the current employment market. Conclusion and Acknowledgements: I would like to thank the AHS Human Resource Team for their assistance with this review. Their technical assistance along with market data provided by various independent external consultants and publicly available reports was of significant assistance in completing this review. Senior Leader Compensation Update www.albertahealthservices.ca A market assessment has been conducted to ensure the Senior Leadership Salary Structure is positioned at the median (50th percentile) of the public sector market that is defined as: • The national healthcare market; and • The Alberta public sector market. The following organizations were part of the AHS review although not all had relevant matches to all senior leadership roles: Comparable Alberta public sector organizations: • ATB Financial • Government of Alberta • Covenant Health • University of Alberta • University of Calgary • WCB - Alberta Comparable Canadian health care sector organizations: • Baycrest Centre for Geriatric Care • BC Prov Health Services Authority • BC Provincial Health Services • Bluewater Health • Brant Comm Healthcare System • Brockville General Hospital • Cambridge Memorial Hospital • Campbellford Memorial Hospital • Centre for Addiction & Mental Health (Ontario) • Fraser Health Authority • Guelph General Hospital • Hamilton Health Sciences • Headwaters Health Care Centre • Hotel-Dieu Grace Hospital • Lake of the Woods District Hospital • Lakeridge Health • Markham Stouffville Hospital • Mount Sinai Hospital • Mtl Hlth Centre Penetanguishene • North Bay General Hospital • North York General Hospital • Northumberland Hills Hospital • Ontario Shores Centre For Mtl Hlth • Pembroke Regional Hospital Inc. • Perth & Smiths Falls District Hosp • Queensway Carleton Hospital • Regina Qu’Appelle Health Region • Renfrew Victoria Hospital • Riverside Health Care Facilities Inc. • Royal Victoria Hospital • Saskatoon Health Region • South Bruce Grey Health Centre • St. Joseph's Health Centre, Guelph • St. Joseph's Healthcare, Hamilton • St. Mary's General Hospital • St. Michael's Hospital • St. Thomas Elgin General Hospital • Sunnybrook Health Science Centre • The Hospital for Sick Children • The Ottawa Hospital • The Scarborough Hospital • The University Health Network • Tillsonburg District Memorial Hosp • Timmins & District Hospital • Toronto Rehabilitation Institute • Toronto’s Sick Kids • University of Ottawa Heart Institute • Vancouver Coastal Health Authority • Vancouver Island Health Authority • Windsor Regional Hospital The national healthcare and Alberta public sector markets were also calibrated using national third party salary survey databases such as Mercer and Towers Watson.

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