All ARH Employees,
Many of you are no doubt aware of the letter circulated last week by the KNA leadership, dated January 10, 2007. While some of the information in the letter was factually correct, there are several troubling distortions and omissions of fact that must be pointed out.

The KNA has consistently alleged that ARH is refusing “to accept the fact that it must honor its contract with the KNA”. This rhetoric is certainly not factual and only serves as propaganda for the KNA leadership to use in its activities to damage the reputation and business of ARH. This activity to damage ARH is designed to pressure ARH to make decisions consistent with the positions of the KNA leadership. In reality these activities can damage the confidence in our patients to utilize our healthcare services, resulting in a loss of patient volumes and jobs. If this rhetoric were indeed factual, the National Labor Relations Board (NLRB) would have cited ARH throughout this contract period for unfair labor practices, which as of this date has not occurred despite the attempts of the KNA leadership. While there is a dispute regarding this issue of compensation and scheduling, ARH continues to pay and schedule its registered nurses pursuant to the Interim Agreement reached with the KNA leadership in December, 2005. We have continued our pursuit of legal remedies in the federal courts because of our strong belief that the limited resources of ARH should not be used to pay employees not to work. In addition, ARH strongly believes Arbitrator Helburn violated Article XV, Section K of the Collectiveltaigaining Agreement, when he ruled that the 36/40 schedule, once granted, is irrevocable until the end of the contract, and that ARH has lost its fundamental right to schedule its employees during this contract period. The arbitrator’s decision was primarily based on past decisions of former ARH Management and not contract language.

The dispute now before the United States District Court and the Sixth Circuit Court of Appeals has nothing to do with any desire of ARH to breach its agreement with the KNA, and is certainly not designed to be injurious to our employees. It has everything to do with our belief that the long-term viability of any company depends upon its ability to reasonably manage and schedule employees in a manner that makes the best sense for our patients, and for the future viability of ARH. These principles are ones ARH

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sincerely believes are worth fighting for. Our actions in the courts are not ones of desperation, but actions consistent with the due process afforded every individual and organization in this country. ARH will continue to exercise our rights to seek a remedy for a decision that we are convinced is not only wrong, but also injurious to ARH. The KNA would most likely have waged the same fight, had the decision gone the other way, and would have had every right to do so.

U.S. District Judge Joseph Hood’s latest decision stated ARH’s motion for a stay pending an appeal is granted in part and denied in part. ARH has asked Judge Hood for a temporary stay of this Order until the Court of Appeals rules on the matter.
However, if Judge Hood’s Order related to ARH’s motion for a stay of his October 13, 2006 decision remains final, then ARH will comply with the Order. This Order would require ARH to begin to schedule the “affected” RNs on 36/40 schedules until the Court of Appeals finally rules on the matter, but would not be required to remit back pay until that time. Furthermore, ARH will post a supersedeas bond in the amount of 3 million dollars, in keeping with the Order.

As I have indicated in previous correspondences regarding this matter, ARH has attempted on numerous occasions to reach out to the KNA leadership in an attempt to resolve the matter, however from the beginning the KNA leadership has refused to discuss a resolution to the issue. The refusal of the KNA leadership to resolve the matter has left ARH little choice but to proceed as it has. Unfortunately, the KNA leadership continues this pattern of non-cooperation, even to the point of refusing repeated overtures by ARH to work together toward an amicable solution. Two offers of settlement have been communicated to KNA since last October, each flatly rejected without any hint of a counterproposal or desire to seek common ground. A mediation conference was conducted by an attorney for the Sixth Circuit Court of Appeals on January 4th, and ARH again appealed to the KNA leadership to bring something to the table that might help resolve this matter and once again, nothing has been forthcoming.

KNA leadership now says, in its January 10, 2007 letter, it will “continue to fight ARH”. It is this sort of that continues to wreak irreparable harm on the relationship, and the ability of our organization to fulfill its mission, and sustain itself in years to come. While ARH does not have a desire to fight with the KNA or any one else, we will stand for what we believe to be right, and in the best interests of ARH, its employees, patients, and communities, as a whole.

Sincerely,
Jerry W. Haynes
President & Chief Executive Officer

I guess ARH has done nothing, and the KNA is to blame for everything … heh just poking fun .. Hi Bruce

1. They did keep some jobs in Hazard.
2. They sold the building they owned in Lexington, but turned around and leased it. Go figure. Why do they even need a building in Lexington now? I’d sure like to know who owns that building now.
3. Moving the network to Hazard cost them about what they profited from selling the building in Lexington.
4. They are now in a legal dispute with their union over back-pay.

Sounds to me like this is one Certificate of Need that needs reviewing in the worst possible way.