UTICA — Mohawk Valley Health System (MVHS) is cutting 48 jobs and making service changes at its two Utica hospitals this month after losing $1.7 million in more than a year of operating under an affiliation agreement.

 

MVHS is an affiliation of Faxton St. Luke’s Healthcare (FSLH) and St. Elizabeth Medical Center (SEMC), both of Utica. The two organizations teamed up in March 2014.

 

“One of the goals of our hospital affiliation is to centralize services and care whenever possible, building on our expertise, and making the best use of our resources to ensure cost savings. While our financial performance is improving, we have, to date through April, experienced a $1.7 million loss for the system,” Scott Perra, president and CEO of MVHS, said in a news release issued on June 3.

 

The employees to lose their jobs include 35 at St. Elizabeth Medical Center and 13 at Faxton St. Luke’s Healthcare, a hospital spokeswoman said in an email following a CNYBJ inquiry.

 

The service changes include consolidating its cardiac-services program, closing a 15-bed medical/surgical unit at SEMC, and combining two scheduling departments into one, according to the MVHS news release. 

 

“We have 48 employees who will be impacted by the changes,” Greg Howard, vice president of human resources, said in the release. “The employees will have the opportunity to apply for other positions within the system. Throughout MVHS, we have a number of openings for a variety of positions, especially nursing.” 

 

The staffing changes involve both union and non-union employees, said Howard. 

 

“To date we have not reached an agreement, known as effects bargaining, with the three unions who are represented at the two hospitals. Such an agreement would allow union members to transition more easily from one campus to another. We are hopeful that we can come to an agreement soon as it will benefit our employees who are impacted by these changes,” Howard added.

 

The unions include the New York State Nurses Association and United Food and Commercial Workers Local One at SEMC, and the Communications Workers of America Local 1126 at FSLH, MVHS said.

 

Service changes

The organization plans to consolidate its cardiac-services program, including cardiac catheterizations and angioplasty procedures, to SEMC. 

 

Currently, cardiac catheterizations and angioplasty procedures are performed at both hospitals. 

 

Open-heart surgery is handled at SEMC through the Mohawk Valley Heart Institute, MVHS said. 

 

The health-care organization also plans to close a 15-bed medical/surgical unit at SEMC and consolidate a “limited number” of support services.

 

“These changes will help us to enhance our centers of excellence, support improved clinical quality, and provide more efficient services for our patients and their families,” said Perra. The consolidation of the cardiac program to SEMC will “centralize” the service and “support greater quality and efficiency.” 

 

“Just like FSLH is the regional stroke center, SEMC will build on its reputation as the Mohawk Valley Heart Institute and be the MVHS Center for Cardiac Care,” said Perra. “We will be working with our medical staffs, emergency departments, and first responders on the transition and anticipate that we will have everything in place by late June or early July.”

 

MVHS is also combining its two central-scheduling departments, one at each hospital, into a single department. It is also uniting its FSLH telecommunications and service-response center into one operation at FSLH.

 

MVHS announced the consolidations as the organization considers the potential for an entirely new hospital. 

 

 

SYRACUSE — Green & Brenneck PCs, which has branded itself as Team Green Lawyers, PLLC, is a growing local criminal-defense law firm assembled of local, former prosecutors.

 

The firm operates on the 17th floor of Axa Tower I at 100 Madison St. in Syracuse.

 

Attorneys Tim Green and Scott Brenneck are the co-managing partners of the firm, which they launched in May 2014. Green declined to disclose their percentages of ownership.

 

Green and Brenneck spoke with CNYBJ at their office on June 10.

 

Besides his work as an attorney, Green is known as a former member of the Syracuse University (SU) football team, the Atlanta Falcons of the National Football League (NFL), and as the author of 31 books.

 

Team Green Lawyers currently has five attorneys, including Green and Brenneck. The firm also employs a marketing director and an office manager. 

 

It hopes to hire three more attorneys and a support-staff member before the end of 2015, Green says.

 

Team Green Lawyers leases its space from Syracuse–based CBD Companies. Green declined to disclose any of the law firm’s revenue information. 

 

Assembling the team

Besides serving as a co-managing partner in Green & Brenneck, Green is also of counsel at Syracuse–based Barclay Damon, LLP (formerly Hiscock & Barclay).

 

Green joined that firm in February 1999, according to his biography on the Barclay Damon website. 

 

As he grows his new firm, Green will continue servicing clients at Barclay Damon because his practice is very successful, he says. Green notes that since Barclay Damon is a business-law firm, he doesn’t foresee any conflicts between Team Green’s criminal-law clients and those of Barclay Damon.

 

Regarding why he started Team Green Lawyers, Green says he had clients come to him with questions about criminal-law issues, either their own or those affecting family or friends. Depending on the issue, he would refer them to attorneys who practiced criminal law. 

 

However, many of the “main” criminal defense attorneys in Central New York are getting older and retiring, Green contends, and the area lacks a dominant firm known for criminal defense.

 

“There isn’t one firm in the area where people who have something happen to them, or someone in their family, know where to go,” says Green.

 

He also contends, “there are a lot of lawyers who aren’t really qualified as criminal attorneys” but will still represent clients in criminal court.

 

The rules and regulation of the legal profession allow it, but “it’s not a … smart thing to do,” says Green.

 

“It’s a very specialized area of the law and I realized there wasn’t one main firm, brand out there [providing the service],” he adds.

 

Green in 2013 began pursuing his goal to create a firm that people would both “recognize” and that “would be the best criminal-law firm in the area,” he says.

 

He acknowledges that he’s not a criminal lawyer, but Green “knew” he could “go out and assemble a team.” 

 

Green spoke with several area attorneys who practice criminal law, both on the defense side and the prosecution side.

 

“My question to them was who is the best young attorney to come out of the DA’s office in the last 10 years … The name Scott Brenneck just kept coming up,” says Green.

 

A mutual friend introduced the pair during an unscheduled meeting at a local restaurant where Green explained his vision for the firm.

 

“It was a great idea, and it’s grown so quickly because it was needed,” says Brenneck. “It didn’t exist.”

 

Green used a football analogy to describe his pursuit of Brenneck.

 

“I went out and got a franchise quarterback with Scott Brenneck,” says Green.

 

Hiring former prosecutors

Team Green Lawyers on May 19 announced that Nicholas (Nick) DeMartino had joined the firm.

 

DeMartino had spent the previous seven years as an assistant attorney general in the criminal-prosecutions bureau of the New York State Attorney General’s office. 

 

Besides Green, Brenneck, and DeMartino, the firm also includes James Daley and Kari Arnold, both of whom had previously served as assistant district attorneys in the Onondaga County District Attorney’s office.

 

Timothy Hennigan, who previously served as a senior assistant district attorney in the same office, will join Team Green Lawyers in July as its sixth attorney, according to Brenneck.

 

CNYBJ asked Green if experience as a prosecutor is a prerequisite for working at the firm.

 

Prosecutors have the level of “experience and expertise” that the firm wants in its attorneys, Green adds. He calls the profession “the proving ground,” which includes “tons of files, tons of cases.” 

 

“I’m not going to say never, but I don’t envision us hiring anybody but former prosecutors,” he says.

 

About the partners

Green graduated from Liverpool High School in 1982 before playing football at SU, from which he graduated with a bachelor’s degree in English in 1986. 

 

The NFL’s Atlanta Falcons drafted Green the same year and he remained with the team through 1993 before retiring in 1994. 

 

During his time in the NFL, Green also studied law before earning his law degree from the SU’s College of Law in 1994. He also started his work as an author. 

 

To date, Green has written 31 books, selling more than 2 million copies, he says.

 

In addition to his work as a lawyer and author, Green has also served as an NFL analyst for FOX Sports. He’s also contributed to ABC’s Good Morning America, 

Court TV (which is now truTV), and most recently co-host of ABC’s Find My Family in 2009. 

 

Brenneck grew up in New York City before graduating from SUNY Cortland in 1997 with a bachelor’s degree in political science. 

 

He later graduated from the SU College of Law in 2001. 

 

His law career began in the Stanley Law Offices, LLP before moving on to the Onondaga County DA’s office as an assistant DA from 2003 through mid-2006. He then joined Cambareri & Cambareri LLP in Syracuse in 2007 and remained with the firm until in 2014.                

 

 

 

 

 

 

A recent U.S. Department of Labor, Employee Benefits Security Administration report, detailing deficiencies of employee-benefit plan audits, shows a need for greater communication in the accounting profession, says one New York accountant who specializes in such audits.

 

According to the report, more than 7,300 licensed CPAs nationwide audit more than 81,000 employee benefits plans, and 61 percent of those audits complied with proper standards. However, the remaining 39 percent of audits contained major deficiencies, which put $653 billion, and 22.5 million plan participants and beneficiaries at risk.

 

The report, entitled “Assessing the Quality of Employee Benefit Plan Audits,” found the most deficiencies came from CPAs who audit just a few plans, with a 76 percent deficiency rate. The firms performing the most audits had a deficiency rate of 12 percent.

 

“There needs to be a lot of outreach from a lot of different parties,” says Adam Lilling, a partner at Lilling & Company, LLP in Great Neck (Long Island). Lilling specializes in auditing employee benefit plans. His firm audits between 50 and 60 benefit plans annually.

 

While a deficient audit doesn’t necessarily mean there is something wrong with the employee-benefit plan, it can add up to a costly headache for both the auditors and the plan sponsor, Lilling says. Accountants found to perform deficient audits could potentially lose their license. Plan sponsors will be notified of a deficient audit and have 45 days to have a new audit conducted. Those who fail face a fine of up to $1,100 a day until a new audit is completed.

 

That’s why it’s important for organizations like the New York State Society of Certified Public Accountants (NYSSCPA) to reach out to members across the state to ensure they know proper procedures for these types of audits, he notes. Lilling chairs the NYSSCPA Employee Benefits Committee.

 

Only plan sponsors with more than 100 participants are required to have an annual audit done, Lilling says. What often happens is that the person at the business who oversees the benefit plan often reaches out to the company’s accounting firm to ask for the audit. Often, that firm doesn’t specialize in such audits, but agrees to do it as a courtesy to its client, Lilling says. The problems arise when those firms aren’t savvy about the ins and outs of these audits and fail to meet the required standards. The process is much more complicated than a financial-statement audit, he notes, and needs to include steps such as a review of the company’s census and timely remittance of plan contributions.

 

“If a census is wrong, the plan won’t be operated the way it should,” Lilling says. It’s not uncommon for the census, a document that governs entry into and exit from the plan along with a listing of company employees and their information, to contain typos and other simple mistakes. A typo in the year of hire, for example, could mean that an employee might be denied entry into the plan when he/she is in fact, eligible. 

 

To help resolve the issue of deficient audits, Lilling supports reaching out to those providers to let them know their audits are falling short and direct them to resources like the American Institute of CPAs and its Employee Benefit Plan Audit Quality Center

(http://www.aicpa.org/interestareas/employeebenefitplanauditquality/Pages/EBPAQhomepage.aspx) for information. Plan sponsors can also visit the site to find a member firm qualified to conduct their plan audits.

 

Along with increased outreach, Lilling also supports improved peer reviews to help spot problems, along with more education for plan sponsors on finding a qualified auditor and what the audit should include.

 

The U.S. Department of Labor has proposed amending the Employee Retirement Income Security Act of 1974 (ERISA) to amend the definition of “qualified public accountant” to add requirements and qualifications to ensure quality plan audits, and to repeal the current limited-scope audit exemption currently in place. The exemption means that accountants don’t need to render an opinion on the plan’s financial statements. Removing the exemption would most likely motivate auditors to adhere to professional standards to ensure their opinion can stand up to scrutiny.

 

“The high rate of audit deficiencies documented in this study are unacceptable and do not reflect the core tenets that the CPA profession holds dear: accuracy, transparency, and accountability,” NYSSCPA President Scott Adair said in a news release the organization issued May 28 to respond to the Department of Labor (DOL) report. “The New York State Society of CPAs is committed to working with the DOL, the American Institute of Certified Public Accountants, and the New York State Board for Public Accountancy to develop educational and practice monitoring solutions that result in significant improvement to employee benefit plan audits.”

 

 

The College Network says claim is not true   

 

New York Attorney General Eric Schneiderman announced early this month that he has filed a lawsuit against an Indiana company after upstate New York consumers complained they paid for “ineffective” study guides.

 

Schneiderman is suing Indianapolis–based The College Network (TCN) and its owner, Gary Eyler, accusing them of inducing “prospective nursing students to pay thousands of dollars for ineffective study guides through false and deceptive business practices.”

 

Schneiderman’s office cites court papers that include affidavits from three dozen New York state consumers, including some from the Syracuse, Rochester, and Buffalo areas, who said that they were “duped by the company.” 

 

It’s a claim that TCN says is “not true” in a statement released through Rochester–based law firm Harris Beach PLLC. The statement has the words “not true” listed in bold-face type.

 

The attorney general’s suit alleges that The College Network “preyed” on as many as 2,000 New York consumers who sought to obtain associate degrees in nursing, Schneiderman’s office contended in a June 4 news release.

 

TCN used advertising and “high pressure sales tactics” to create the “false impression” that it was offering online nursing degrees and that it was affiliated with Excelsior College, an accredited institution based in Albany that offers such degrees, according to the attorney general’s news release.

 

Additional details

Court papers indicate TCN targeted licensed practical nurses and paramedics with online advertisements that “created the false impression” that it was affiliated with Excelsior College and offered associate degrees in nursing that consumers could earn “in just 18 months,” Schneiderman’s office said. 

 

After consumers responded to the online advertisements, TCN dispatched sales representatives, referred to as “program advisors,” to consumers’ homes. The advisors “reinforced” the false impression that The College Network was affiliated with Excelsior College and engaged in “high-pressure sales pitches” to induce consumers to sign up for TCN’s “program.” 

 

However, the program consisted of “little more” than a series of study guides that many consumers found “difficult to understand” and that, “contrary to the company’s representations, did not prepare them for the required exams they needed to pass in order to get course credit.”

 

The court papers allege that TCN charged consumers about $500 for each study guide and “required” consumers to purchase upfront guides for every course they would need to earn their degree from Excelsior College. 

 

In many cases, the total cost of the network’s program exceeded $10,000, which “forced” most consumers to accept the financing that TCN offered, the attorney general alleges. In many cases, TCN “did not disclose” that the loans were being provided by a credit union, not TCN.

 

The suit also names Tennessee–based Southeast Financial Credit Union, which partnered with TCN to provide financing to consumers and American Credit Exchange, a collection agency that Eyler operates that attempted to collect from consumers who defaulted on their loans.

 

TCN  statement

TCN provides study guides and learning modules that “numerous professional” educators from colleges and universities nationwide have written. The company has been “successfully” delivering “quality products for our thousands of customers for more than 20 years,” according to the TCN statement.

 

Schneiderman’s “bloviating” statements are the “real” false advertising in this case, the statement went on to say. The law is “clear” and TCN has done “nothing unlawful,” it said. 

 

TCN said it sought “multiple independent” opinions from experts in the field of advertising and marketing to review the advertising, and provided the “uncontradicted” findings to Schneiderman “weeks ago.” And, the experts concluded that Schneiderman’s claims are “not supported by fact.” 

 

For example, Michael Pepe, a professor at Siena College near Albany, said the following in a sworn affidavit.

 

“The TCN advertising, contracting provisions, promotional and educational materials are consistent with typical industry materials and industry guidelines. The TCN materials are not misleading, improper or deceptive in a material way, and there is sufficient documentary evidence to conclude that TCN was not attempting to mislead the reasonable consumer or act in a deceptive manner,” according to the TCN statement.

 

TCN also said the conduct of “certain individuals” that Schneiderman employs has left it “shocked.” The conduct became “so egregious” that it reported the actions to the New York State Joint Commission on Public Ethics (JCOPE).

 

The TCN statement didn’t elaborate on the conduct about which it is complaining.

 

TCN “looks forward to vigorously defending this case in court” and JCOPE’s “thorough investigation of our ethics complaints” concerning Schneiderman’s office, according to the statement.