Rick Surpin

1
Rick Surpin

• Presented by
• Angela Nash Fakhar Zaidi Frank Bawuah
  Justin Brumbaugh
• Molly Sarles Phillip Nguyen Priyank Patel
  Rosie Baerwaldt

2

• Surpins Background

• Born in 1949 in New York, NY
• Graduated from Seton Hall University
• Staten Island Community Corporation- Executive
  Director
• Founded Mutual Aid Project
• Joined Community Service Society (CSS) in 1982
• Launched On Time Carpentry in 1983 (Failed 18
  months later)
• Founded CHCA in 1985

3
Surpins Social Goals

• Improve local community economic development
• Create decent jobs for low-income people
• Improve home health quality of care

• CHCA was the key!

4
Home Health Care Industry/CSS Deliberations

• 1980s Health Care
• NAHC (National Association for Home care)
• increased from 3,178 to 4,258 Medicare-certified
  home health agencies
• Controversy
• General Accounting office (GAO)
• Economists Opinion
• Culture
• Outsourced (ICA Group) from Boston
• Full time positions in a part-time market

5
Surpins Business Vision

• Establish a worker-owned home health-care
  business that benefited both workers and patients
• Social goals
• Service South Bronx section of NYC
• Employing gt 100 people
• Salaries of 15K per year (highest in industry)
• Offering benefits
• Career advancement opportunities
• Better jobs, High pay
• Reliable, high quality Patient care

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Market Research and Evaluation of Home Health Care

• Market Segment
• Beating the Competition
• Risks/Assumptions
• Finances

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Market Segment

• Home health care- an alternative to nursing homes
  (providing modest medical needs, personal
  hygiene, prepared meals, run errands,
  companionship)
• Aged, disabled, and poor patients
• Fastest growing segments in the healthcare
  industry

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Beating the Competition

• The first 100 worker-owned home health company
  in U.S.
• Highest starting salary
• Regular salary increases
• Offering health benefit and life insurance
• Reimburse all work-related travel expenses
• Annual uniform allowances
• Implement State Certification to new employees
  and provide continuous in-service training
• Provide job skill upgrading programs
• Providing child care services
• Vacation time, sick day leave

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Risks/Assumptions

• Projections of future growth
• Slow, steady growth through reputation
  establishment
• Ability to improve quality services with Better
  workforce
• Investment in workers will increase revenue
• Reimburse at higher rates
• Timeliness of payments
• Diversification of services
• Accessibility of loans/grants for start up

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Finances

• Projected profit of 120,000 by 3rd yr
  (following 2 yrs of loss)
• Key Assumptions
• 2.2 million service revenue by 3rd yr
• Premium wages and benefits for employees
• Tiered financing (workers, loans, grants)

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• What Constitutes a Good Job?

• Technological Advancements?
• Telecommuting?
• e-HR?

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• Essential Elements of a
• Quality Job for Caregivers

• For direct-care workers throughout the United
  States, providing the highest quality care to
  long-term consumers is only possible when their
  jobs provide fair compensation, opportunities for
  professional growth, and adequate support. A
  network of organizations, believing in the basic
  principle of quality care through quality jobs,
  has adopted the following principles that define
  the essential elements of a high-quality
  direct-care job.

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Compensation Family-sustaining wages
Affordable health insurance and other
family-supportive benefits Full-time hours if
desired, stable work schedules, balanced
workloads, and no mandatory overtime Opportunity
Excellent training that helps teach each
worker develop and hone all skills - both
technical and relational - necessary to support
long-term care consumers Participations in
decision making, acknowledging the expertise that
direct-care workers contribute, no only to
workplace organizations and care planning, but
also to public policy discussions that impact
their work. Career advancement
opportunities Support Linkages to both
organizational and community services, as well as
to public benefits, in order to resolve
barriers to work Supervisors who set clear
expectations and require accountability, and at
the same time encourage, support, and guide each
direct-care worker Owners and managers,
willing to lead a participative, ongoing quality
improvement management system - strengthening
the core care giving relationship between the
long-term care consumer and the direct-care
worker.
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The Process of Strategic Management
Identify Assumptions
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• Class Discussion

• Is it possible for Rick Surpins plan of a
  worker-owned home-care co-op to be a
  self-sustaining, market-driven business?

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Incorporating

• Incorporated in 1985
• Adopted worker cooperative structure
• Obtained initial funding
• Appoint CEO and management team

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Challenges/Shortcomings

• Lack of Leadership
• Financing Venture
• Low volume
• Debt accumulation (loans, payroll)
• Rapid growth difficult to manage

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Culture

• Intended vs Actual
• Great Company with Worker-Owned Firms
• CHCA workers felt deceived and dissatisfied
• Creating RIGHT Culture
• Firing and Hiring New People
• Recruitment Process
• Training

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Worker-Owners

• Payment Plans
• Pay 50 towards the 1000 ownership share
• Independent
• 160 aids out of 240
• Evaluations
• High marks were given to Rick Surpin and the
  company

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Ultimately Achieving Success

• Restructuring administration
• Secured more home-care contracts from earned
  reputation
• Investing in upfront training of staff
• Rigorous screening process for job candidates
• Increase co-ownerships in company
• Creating career ladders
• Industry Reform

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Where is CHCA now?

• Providing quality and decent jobs for more
  than 1,600 employees that generate over 60
  million in annual revenue.
• 550 employee are African American women or Latina
  women (75 of these women were on public
  assistant).

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• Where is Rick now?

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Where is Rick now?

• The Schwab Foundation named Mr. Surpin a 2004
  Outstanding Social Entrepreneur.
• Now he is the founder and President of
  Independence Care System (ICS), a nonprofit
  Medicaid managed long term care organization for
  adults with physical disabilities.

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• Questions?

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Thank you