Saint Vincent reaches contract agreement with residents, interns, including 6% first-year pay hike

By Caroline Salls

Pittsburgh, May 18 - Saint Vincent Catholic Medical Centers requested court approval of a memorandum of understanding on the collective bargaining agreement between Saint Vincents Manhattan and its committee of interns and residents, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The agreement will take effect retroactive to May 1 and will run through April 30, 2009.

Under the agreement, employees as of May 1 will receive a 6% wage increase; each employee as of May 1, 2007 will receive a 3% wage increase; and each employee as of May 1, 2008 will receive a 3% wage increase.

Additionally, each full-time chief resident will receive a $1,500 annual stipend for the period of his or her service as chief resident, which will increase by 6% on July 1, 2006, 3% on July 1, 2007 and 3% on July 1, 2008.

Saint Vincent said the agreement will mean $1.05 million in increases for the year May 1, 2006 to April 30, 2007; $556,772 for the year May 1, 2007 to April 30, 2008; and $573,475 for the year May 1, 2008 to April 30 2009.

The chief resident stipend increase is expected to cost $1,800 for the year July 1, 2006 to June 30, 2007, and will increase by $960 for the year July 1, 2007 to June 30, 2008 and increase again by $980 from July 1, 2008 to April 30, 2009.

Also, Saint Vincent will increase rents on apartments it leases to interns and residents "to a more competitive rate" effective July 1.

The amount of each rent subsidy depends upon the size of the apartment and whether the lessee has a family with a child.

Saint Vincent said the amount of the rent subsidies will decrease from year to year, and, for the most part, be eliminated by July 1, 2008.

In addition, employees entering a residency program on or after July 1, 2007 will generally not be eligible to receive rent subsidies.

Rent subsidies will total $1.3 million from July 1, 2006 through June 30, 2007, $611,200 from July 1, 2007 through June 30, 2008, and $0 from July 1, 2008 through April 30, 2009.

The medical center said it expects that the increased revenue from these apartments realized from the proposed rent increases will more than offset the amount of subsidies offered through June 30, 2008.

A hearing is scheduled for June 7.

The New York metropolitan area health care system filed for bankruptcy on July 5, 2005. Its Chapter 11 case number is 05-14945.

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