1. HEALTHSOUTH Presenters: Russ Blitz, Director of Sales Jason Kimbrell, Executive Vice President Sheila Benson, CEO May 27, 2010 1 Beyond Compliance – Wise Choices for Screening Presented by Josh Behm and Russ Blitz

2. 22 At the end of this presentation you should be able to: Explain why Background Screening is important Outline Industry Best Practice for Background Searches Identify Best Practice Technology solutions Learning Objectives

3. What percentage of people do you think lie or embellish on their resumes? 3 A recent study found that 53% of job applications contained false information. The Society for Human Resource Managers

4. How can you be really sure who you are hiring without performing pre-employment background screenings? 4 People are not always who they seem.

5. Companies often say that their employees are their most important asset. Likewise, performing a background screening of prospective employees is the most important step in evaluating these assets. Background screening can: Reveal criminal arrests and convictions Verify employment and education Reduce the risk involved in making a hiring decision 5 Why Screen?

6. Cost: What is the value of a productive workforce? Safety: Are applicants a threat to themselves? Others? Risk: Are applicants a potential financial or legal liability? The Case for Background Screening

7. The Good News…ROI For every dollar an employer invests in employment screening, the return on investment ranges from $5 - $16, resulting from improved productivity, reduced absenteeism, lower turnover – decreased employer liability. U.S. Small Business Administration Pay Now or Pay Later

8. 8 Where Are We Now? Frequently Used Criminal Reports Survey Results TypePercent % SSN Trace / Verification57.1% GA Criminal Only42.9% All Criminal History for Last 7 Yrs.71.4% OIG57.1% Sex Offender Registry14.3%

9. 9 Where Are We Now? Frequently Used Verification Reports Survey Results TypePercent % Employment42.9% Education28.6% License57.1% Other14.3%

10. 10 Where Are We Now? Time to receive results? Survey Results

11. 11 Where Are We Now? Monthly screening volume? Survey Results

12. 12 Where Are We Now? Amount per applicant? Survey Results

13. 13 Where Are We Now? Applicants apply for job openings online? Survey Results ValuePercent % Yes57.1% No42.9% Using an Applicant Tracking System? ValuePercent % Yes28.6% No71.4% * Of those that answered Yes, none had their Applicant Tracking System linked to an online background screening system.

14. Best Practices… Compliance Pre-Adverse Letters Adverse Letters Screening Accurate Timely Comprehensive Utilizing Technology

15. 15 Best Practices Compliance

16. 16 Strive to stay educated with compliance legislation regarding: Consent Forms Summary of Rights Pre-Adverse Letters Adverse Letters Verif-I-9 Assistance in Investigating Disputed Information Compliance Manual Personal Training with Customer Service Legal Compliance Follow the Rules

17. 17 Legal Follow the Rules Pre-Adverse Action Letter Copy of consumer report Summary of Your Rights Under the Fair Credit Reporting Act Reasonable amount of time for applicant response before adverse action taken Notifications and Documentation: Pre-Adverse Action Adverse Action Letter Name, address & telephone number of Consumer Reporting Agency (CRA) Statement CRA did not make decision to take adverse action & can not provide reason adverse action was taken Summary of Your Rights Under the FCRA - Right to obtain free copy of consumer report from CRA - Right to dispute accuracy or completeness of information with CRA Adverse Action

18. 18 Best Practices Screening

19. 19 Best Practices Social Security Trace County/State vs. National Sex Offender FACIS Drug Screens Verifications E-Verify Applicant Tracking System Recommendations

20. 20 Best Practices A Social Security Number provides a direct link to an applicant’s background information. Any effective, dependable, and compliant criminal background check begins with a Social Security Number Search. Provides: Address history (great tool to determine specific court jurisdictions that should be researched for criminal records) Alias names that have been associated with that SSN, which can be cross-referenced with the same courts Social Security Trace

21. 21 Best Practices When hiring employees who will be handling funds or valuable inventory or interacting with your customers, you need to be sure you can trust them — and that they don't have a criminal or violent history. Your safety and the safety of your employees depend on it. Criminal Report Options: Federal & Civil Records Statewide Criminal County Criminal Criminal

22. 22 Best Practices County courts provide the most up to date, accurate and comprehensive data available. County Criminal Searches Statewide repository of state police and criminal records. Relies on reports from counties. State Criminal Searches

23. 23 Best Practices The most comprehensive search available, but should not be used alone National CrimSearch is an instant, nationwide search of available criminal records which some states and counties report to. Provides information in a reader-friendly, digest format for quick review. Helps lower the cost of county criminal reports by pinpointing specific counties to conduct a search. National CrimSearch

24. 24 Best Practices Considerations when doing Criminal Searches Some but not all counties report their information to a state repository. If you request a background check only in the state where your business is located, you could miss important information. Nationwide criminal database casts the broadest net, but may have the largest gaps as well. It’s not a perfect database. Should not be used as your only check.

25. 25 Best Practices While sex offenders do have the right to work, you also have the right to know about their history. Not only can past behavior restrict where they can work and what kind of job they can obtain, but you need to maintain the safety of your employees and of those that your organization serves. While rules vary from state to state regarding the availability of this data, reports may include the subject’s address, type of offense and FBI and state offender number. Sex Offender

26. 26 Best Practices The FACIS Report conducts a search of the sanction information as taken by the OIG (Office of the Inspector General), the GSA (General Service Administration) and other federal agencies. The information reported in this level meets the government’s minimum requirements for sanction screening as set forth in the OIG’s Compliance Program Guidance. FACIS (OIG and GSA Report)

27. 27 Best Practices Drug Testing Industry standard is 5 or 10 Panel Lab Based Usually collected in the lab of the hospital

28. 28 Best Practices 28 Verifications Reports verify education, employment, dates, position and eligibility for rehire, as well as information regarding applicants' previous job. Reveal gaps in employment that might indicate past problems or issues of which you need to be aware. Professional License - An employer has the right, responsibility, and duty under the law, to verify an employee has all current licenses and are in good standing. References - Help determine the true character of an applicant as it relates to the job and provide information about their competence and fitness for the job in question.

29. 29 Best Practices 29 E-Verify E-Verify is an Internet-based system that compares information from an employee's Form I-9, Employment Eligibility Verification, to data from U.S Department of Homeland Security and Social Security Administration records to confirm employment eligibility. Mandated by the state of Georgia under the Illegal Immigration Reform and Enforcement Act of 2011 (HB 87) Enforcement begins January, 2012

30. 30 Best Practices Technology

31. 31 Best Practices 31 Applicant Tracking System Applicant Tracking Systems are used commonly used to provide: Job Boards Online Applications Process Tracking Technology Integration Saves time and improves efficiency

32. 32 Job Board Creating job descriptions Creating job requirements Jobs can be posted on any recruiting website (hospital website, Monster, Career Builder, etc.)

33. 33 Job Board

34. 34 Immediately received electronically Easily reviewable by hiring managers – eliminate manual paperwork Applications remain saved on system Online Applications

35. 35 Online Applications

36. 36 Online Applications

37. 37 Que enables all parties to see where applicant is in the evaluation process Has the application been reviewed? Background check complete? Offer presented? Rejected? Hiring team has quick, easy access to information Process Tracking

38. 38 Process Tracking

39. 39 Integrations connect HRIS and background screening systems Online application system auto-fills applicant information into background screening system Eliminates manual re-entry of applicant information Seamless connection between systems greatly reduces admin burden Technology Integration

40. 40 Technology Integration

41. 41 Recent Trends Expanded use for criminal background checks to include screening volunteers and contractors. Industry accreditation sets the bar for screening providers In 2010, National Association of Professional Background Screeners (NAPBS) announced a new Background Screening Agency Accreditation Program (BSAAP). The Equal Employment Opportunity Commission (EEOC) has increased their scrutiny of hiring practices, exposing employers to a greater risk of discrimination lawsuits.

42. 42 Conclusions Comprehensive Background Screening is essential in today’s healthcare environment Due-diligence is your obligation Incorporate best practices into your screening process Utilizing technology can streamline processes for all departments

43. 43 You should now be able to: Explain why Background Screening is important Outline Industry Best Practice for Background Searches Identify Best Practice Technology solutions Learning Outcomes