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Minutes

Committee Hearing, May 21, 1998

Philadelphia City Council Committee HearingsMay 21, 1998

People mentioned

Names our system found in this transcript. Automatically extracted, so it can include anyone named in the record, not only officials or parties.

Organizations mentioned

Mr. Gurson

Well, it's not as large as 133 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 Rite Aid but I don't know its exact size.

Councilman Nutter

Very few people are as large as Rite Aid.

Mr. Gurson

Excuse me?

Councilman Nutter

Very few people are as large as Rite Aid. Now, is it my understanding that -- this may be more appropriate for Miss Seyda. Given the --

Councilwoman Blackwell

Excuse me, Mr. Chairman.

Councilman Nutter

Sure.

Councilwoman Blackwell

Mr. Chairman, may I be excused just for a moment? I have to go to 319 for a meeting. And let me also say that Mr. Hushen has done an excellent job in west and southwest Philadelphia where we are, to try to represent Rite Aid well. And let me just finally say before I go down that as my staff member came in late -- I have a new staff attorney. And as fate or as God would have it, she came in on a cane and, believe it or not, has the same condition that the City 134 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 employee has and takes the same medicine and has the same prescribed treatment, period. It is absolutely unbelievable. And when I asked her about her medication, thank God, her husband's on a plan and it's just mailed to her. But she doesn't have to, thank God, rely on the City so that she gets the treatment that she needs. So I have even an added interest because, apparently, the body of people who need this are more than we way know.

Councilman Nutter

Miss Seyda, can we ask that you -- well, I guess there's technically no need to look into Councilmember Blackwell's staff person's situation, but I think it further exemplifies some need for resolution to this problem.

Councilman Cohen

Mr. Chairman, before we go further with Miss Seyda, on Eagle Management, are they the ones that control the stock inventory?

Mr. Gurson

Excuse me?

Councilman Cohen

Does Eagle Management control the pharmaceuticals? 135 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586

Mr. Gurson

No, sir.

Councilman Cohen

Who does that?

Mr. Gurson

Rite Aid.

Councilman Cohen

Because in the Champlost store, it is quite common to be told, Well, we don't have it, you have to go to another Rite Aid store. And you ask, What Rite Aid store? Well, we don't know, we don't know who has it, but we feel confident some Rite Aid store has it. It's also a very common practice to get a partial prescription filled in the sense that, say, you're supposed to get 50 or 60, you may get 15 or 20, and you're given a slip. And if you come back next week, we will have the others. I had never before, until this Rite Aid came to Champlost, ever run into that in a pharmaceutical place on standard things that doctors were prescribing. But someone, whoever's running it maintains the lowest inventory I've ever seen. It is a very common practice. It happened to me any number of times. And as I wait there, I hear folks behind the counter explaining 136 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 to folks that come, saying, We don't have this in stock in this store, we'll have it next week. And I think Thursday is an ordering day or the day in which orders come in in that location. So I just wondered, where is that responsibility? I just can't understand why that happens. Then always, there is a long wait for a prescription.

Councilman Nutter

Mm-hmm.

Councilman Cohen

And I don't know whether it's for the purpose of having people wander through these candy aisles. It's a very attractive setup.

Councilman Nutter

Right.

Councilman Cohen

Very attractive, even though the doctor says to stay away from them. You know, they are particularly for women that have kids who have a great time, you know, roaming through the aisles and finding things to buy. At some point, I think we would like to raise those kind of issues because we think your stores ought to be well-stocked with the 137 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 traditional medicines that ought never to be necessary for anybody to have to go to another store. And this is one of your major stores.

Councilman Nutter

Right.

Councilman Cohen

Sometimes one of your people will say, Well, we think the Cheltenham store will have it, something of that sort. In one case, I had to send someone into North Philly to get a prescription for myself. Now, I live up in West Oak Lane, about three, four miles from North Philadelphia. But no other stores seemed to have it. But he went through a number of other by telephone, calling to see if they had it. Finally, one store that's located in North Philadelphia had it. And I was just wondering, there didn't seem to be anybody responsible for management of those items.

Mr. Hushen

That is the responsibility of the pharmacy department manager in that particular store, and that is probably not an uncommon complaint. And what we are trying to do or what we 138 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 are in the process of implementing is an automatic replenishment system in the pharmacy department where, in essence, what we would have at any given time is an actual on-hand perpetual inventory that will automatically be replenished based on a dispensing formula. So that if somebody comes in and has a prescription filled for 50, it will actually replace that 50, and the pharmacy manager or the pharmacy technician won't have to do anything other than maintain the system. Unfortunately, you're dealing with people. Some are better than others. And there are times when, in that particular location, after our last conversation, that gentleman was spoken to because he, in fact, was not ordering properly. And that's --

Councilman Cohen

Well, I can just say that when I discussed it with others, it seems to be a fairly common complaint. I'm told, "You haven't heard anything yet, let me tell you what my experience was with Rite Aid." And that's the kind of thing I'm running into all over the City. 139 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 And I just think you ought to be -- somebody ought to be really paying attention to that kind of situation.

Mr. Gurson

As Mr. Hushen pointed out, we're not only paying attention to it, but we're spending a lot of money to try to get computers to develop the computer system and the data base which allows you to know what has been ordered and in quantity. But you can't just put it in; you have to develop the software and then put the information in. But it is a problem, it's a problem work on all the time.

Councilman Cohen

Well, I think one of the problems is the huge turnover of people behind who -- you know, they seem to be very nice folks. You know, they want to be of service. But no matter how many times you've been there, you are a new person to them, and you have to go through many questions asking you, "Have you ever been here before?" you know, when you've been maybe a regular customer. I don't know what the salary is. Are they covered by the union contract too? 140 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586

Mr. Gurson

The pharmacists are not.

Councilman Cohen

Those behind the pharmacy?

Mr. Gurson

The pharmacists are not.

Mr. Hushen

No, the pharmacists are not part of the bargaining unit.

Councilman Cohen

Well, you might want to look at the salary range you're paying them. I mean, that may be part of the problem of the turnover. I just don't understand the constant turnover.

Mr. Hushen

In some cases, it may not be turnover. They may be working for Rite Aid at another store; they're just not in that same store all the time. Our best-case scenario is to get two people to work the same store. And that particular store where you are is open a little bit longer, so it generally has -- it's open 16 hours a day. So we'll have -- you can't ask someone to work that one-day shift. It's too long. So you may see more people and --

Councilman Cohen

No, but could you 141 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 have, say, to use your figure of 2, couldn't you have people -- assigned during day shift, 2 4 assigned during the night shift on a kind of a regular basis; even 2 more for the weekends or extra hours? Whatever it is, couldn't they tend to be -- people don't just leave. Why would Rite Aid take somebody from one store and put them in another store? Why don't they just stay in the one store and get to know the people? I think, from your end, it would be much better. And from the community end, it certainly would be much better.

Mr. Hushen

That is what we would strive for, yes, sir.

Councilman Nutter

Well, let me make comment, and then Councilwoman Tasco wants to ask a question. I would have to add to Councilman Cohen. And with all due respect to the Rite Aid individuals, my personal experience has been that your service in many of your stores, at least in West Philadelphia is pretty sorry. I have had numerous personal 142 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 experiences with -- and you can update your systems, and I commend you for spending the dollars to get additional computers and backups and make sure that items are in stock. But all the computers in the world will not rectify problems of people not thinking. If they don't think well -- you can have all the computer systems in the world -- the stores still won't run right. And some of that comes down to good old-fashioned training and common sense, and we'll have some further discussion about that. But Councilwoman Tasco has a question.

Councilwoman Tasco

Well, I guess I was listening partially upstairs on my box and I had to come down too because I am deeply distressed with the quality of service that I particularly have experienced also, particularly during the Christmas holidays when a very good friend of mine was very ill. And what Councilman Cohen said about the how you go to one store and they don't have the prescription. They didn't for me look in the computer to find out where I could go. 143 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586

Councilman Nutter

Right.

Councilwoman Tasco

They didn't have a list of any of the other Rite Aids in the neighborhood where I could go. And I wanted to know where I could find this prescription. And it was, "Well, maybe you can get it over someplace else." I said, "Well, where is that?" And it was, "Well, I don't know." So if I didn't have a phone to get through information, I couldn't find the store. Didn't know -- it was a hours, it was 12:30 13 a.m. in the morning, so all of the stores are not 14 open, they didn't know what stores were open and 15 what area they were open in, didn't have a list of 16 the stores. 17 And when I got to the store in 18 Roxborough, they didn't have the prescription. I 19 had to take a generic medicine, which the doctor 20 did not want. The doctor wanted me to have the 21 prescription in the name, so it was very 22 frustrating in dealing with them, and I dealt with 23 them for about three or four weeks. And the 24 experience, I will tell you, was not very pleasant. 144 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 And Councilwoman Clark is not here, but I will relay the story she had with her mother at the same time because we were collaborating on this. The Rite Aid around the corner had the prescription her mother needed. Her mother was not in the computer system. A Rite Aid may be in, say, Roxborough, had her name in the computer but didn't have the medication. But this Rite Aid around the corner from her would not give her the medication. And so there was just no coordination that this store over here could say, Okay, she's in the computer, she has an okay, a plan, it's approved, you can give her the medication. Because it wasn't at Tenth and Oxford, or wherever this store is near Councilwoman Clark, she was on the phone all day with your Harrisburg office, trying to get her mother a prescription, which doesn't make sense. You've got to do a better job of finding -- being able to tell a customer that we don't have the prescription here, but you can go to -- it's over across town. Or it's at Broad and 145 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 Olney, or it's at Stenton Avenue. I don't want to have to go to five Rite Aids in my neighborhood.

Councilman Nutter

Or, Councilwoman, how about this novel concept? How about they'll actually get it at the store where you are so you can get it there.

Councilwoman Tasco

Oh, I agree with that.

Councilman Nutter

How about that for a notion? That they'll figure out where it's at, go get the medicine or have it delivered from their other store to your location?

Councilwoman Tasco

Right. Since you have the monopoly on providing service to the City, I want better service. It was just incomprehensible what I went through during the holidays trying to get this medication. It just didn't make sense.

Councilman Nutter

Well, I won't bore you with my horror story of running around in the middle of the night to four of your different stores 'cause none of them could talk to each other.

Councilwoman Tasco

None of them -- 146 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 you're right, they can't talk to each other. And none of them had the prescription; it was always a generic brand, which is not a brand; it was generic medicine.

Councilman Nutter

Right. Who do people talk to about these kinds or problems? Do you have a customer service number, do you have someone on the ground here in Philadelphia that, if a public employee has a concern or a complaint about service, who do they talk to?

Mr. Gurson

They can dial 1-800-Rite Aid? It's Customer Service.

Councilman Nutter

Is that on our cards? Where would we find that material?

Ms. Seyda

We provide that information to employees. It was -- that information was included in the information that went out to the employees during the open-enrollment period.

Councilman Nutter

That's the December 8, 1997 distribution of material?

Ms. Seyda

That's correct. And, I mean, obviously, from these hearings today, it's clear that not enough of that information -- that information isn't getting out to employees the way 147 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 it should be getting out to them. I mean, that's very clear to me from what I've heard today.

Councilman Nutter

Let me ask this question: Mr. Gurson, you very generously offered the 1-800-number. Is that the same as 1-800-545-5591?

Mr. Gurson

I will take a look. I mean -- do you have a --

Councilman Nutter

Do you have a Rite Aid card on you?

Mr. Gurson

No, no, I mean a key pad to see if what the numbers correspond to.

Councilman Nutter

Okay.

Councilman Cohen

Has Rite Aid Pharmacy Card Incorporated gone out of business?

Councilman Nutter

That was like four cards ago, Councilman?

Councilman Cohen

Yeah, but does it exist, or is it merged into Eagle?

Mr. Gurson

I think it's fair to say that it's operations are -- it's operations are part of Eagle.

Councilman Nutter

That's -- that's Councilman Cohen still carrying around one of the 148 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 original cards. I think that's going to the Smithsonian. Let me tell you what the Eagle Managed Care card says. It says, "If you have any questions or problems with processing a prescription under this program, please call our customer service department, at 1-800-545-5591, during normal operating hours. Is that a 9-to-5 number?

Mr. Gurson

Is it 9-to-5, is that your question, sir?

Councilman Nutter

What's the normal operating hours?

Mr. Gurson

I believe it's open longer than 9 to 5 but I do not know the precise hours.

Councilman Nutter

So if I had a problem at 9 o'clock at night, I could call this number and talk to somebody?

Mr. Gurson

Mr. Hushen has advised me that he believes it's open hours. 22

Councilman Nutter

Okay. And what are 23 they going to do when I call that number and tell 24 them I've been four to stores and none of them have what I'm looking for? What are they going to 149 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 do?

Mr. Gurson

They're going to call Mr. Hushen.

Councilman Nutter

They're going to come at o'clock at night and get my prescription 7 for me? Is that what they're going to do? 8

Mr. Gurson

Not to be facetious, 9 they're going to try their best to help you solve the problem for you. No matter what the problem is, they're going to tell Councilwoman Clark or anybody else where the closer Rite Aid is or the other Rite Aid is.

Councilman Nutter

Well, in the Councilwoman Clark example, she had to personally spend her time talking to Harrisburg. That's your corporate headquarters, Camp Hill, Harrisburg, PA?

Mr. Gurson

Correct.

Councilman Nutter

Right. They spent all day; they couldn't resolve it. And she's a member of City Council. What's a person in the Recreation Department going to do? Are you guys going to spend all day on the phone with them?

Mr. Gurson

We will do everything we 150 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 can to solve any customer's problem.

Councilman Nutter

Is there a local person here that, when we have problems or complaints, since you have a contract with us and our 8,000-and-some employees directly and possibly indirectly thousands of others, who do we talk to?

Mr. Gurson

Mr. Hushen. But we can't -- we -- our number --

Councilman Nutter

Is Mr. Hushen's name going to go on the new set of cards that go out?

Mr. Gurson

Councilman, Councilman, with due respect, uh, we run a 24-hour-a-day customer service line. We try our best. I will not sit here and tell you or anybody else that we solve every problem or that we do everything correctly. But we manage an enormous number of lives for the City and for others, and we provide first-quality service. These are instances which I wish we did not have to hear about 'cause, frankly, we don't make money because we don't do it well every time. We always do it -- make better money if we 151 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 do it well every time. We're not happy to hear of these instance. We wish they didn't occur. But we run a large organization with people, and people, as you pointed, out make mistakes and don't always do what they're trained to do or what they're supposed to do.

Councilman Nutter

I think this is a question about training. And, again, I will say it's just a question sometimes of good old common sense. We all have these situations apparently or our staffs or our constituents, and some of this stuff just doesn't make any sense. In my particular case, no one offered me any help or support. And, as Councilwoman Tasco said, none of them knew where the next store was, none of them offered to call any of those stores to figure out if they had the particular prescription that I needed. And I ended up going to a non-Rite Aid store because someone there was willing to help me. Now, I subsequently sent you guys the bill and did get reimbursed, but I had to do it all on my own at 8, 9, 10 o'clock at night. And the 1-800 number was of no assistance whatsoever, 152 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 and I didn't know Mr. Hushen at the time, but I shouldn't have to call him.

Mr. Gurson

You shouldn't have to call him.

Councilman Nutter

And the people working in your drugstores didn't know where the other stores were and didn't have the common decency to offer to find out how to solve the problem. That's what customer service is, in my mind. Did you ever work in a drugstore?

Mr. Gurson

I have not, but I couldn't agree more with your statement.

Councilman Nutter

I did. I know a little bit about customer service in a drugstore, and I was totally dissatisfied with your customer service on a personal level, not because I'm a member of Council but because I know about what's going on in a drugstore. So you can have all the computer systems you want. If the folks don't have enough common sense to look on a sheet and call someone else at the location where a customer needs it, then you can't serve us, you just can't do it. 153 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 And aren't you the largest chain drugstore in the country when all acquisitions are over?

Councilman Cohen

They'd like to be, I'm sure of that.

Councilman Nutter

I think they're right there. Or if not, they're right on the edge.

Mr. Gurson

We are close. Walgreen's has larger gross sales and I believe that CVS does also.

Councilman Nutter

But you have the most stores.

Mr. Gurson

I believe now CVS has more stores.

Councilman Nutter

Miss Seyda, let me ask this question: Is there going to be an RFP for a prescription drug plan for the City?

Ms. Seyda

That remains to be seen. As you corrected me earlier this morning, there was a provision for three renewals so that there will either be a renewal --

Councilman Nutter

Well, are we operating under the '96 contract or are we 154 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 operating under the contract that was signed two days ago? Because that seems to expire on December 31, 1998.

Ms. Seyda

That's right. That's for this current renewal year.

Councilman Nutter

Right.

Ms. Seyda

And then when we -- during the course of these hearings, when we looked back at the basic contract, it provides for -- and I stand corrected -- three renewals at the option of the City. We are in the second one now.

Councilman Nutter

Why do we keep doing these one-year contracts with multiple renewals? Why don't we just have a long-term contract between the provider and the City of Philadelphia? And what were the service standards at the time of the RFP, back in 1995?

Ms. Seyda

I think there's a couple of questions there.

Councilman Nutter

There are a couple of questions, and there are, hopefully, a couple of answers.

Ms. Seyda

In terms of -- I don't know 155 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 the answer to -- I don't have the answer to your question in terms of why we did not have a long-term contract as opposed to a one-year contract with renewals. I have to get the answer for that question for you. I do not have the answer to that question.

Councilman Nutter

Was Rite Aid opposed to signing a long-term contract with us?

Ms. Seyda

I do not have the answer to that question; I will provide you with the answer.

Councilman Nutter

Are you opposed to signing a longer-term contract than one year, with multiple renewals with the City of Philadelphia should you decide to respond to a potential RFP in the future?

Mr. Gurson

That would depend on -- we have no policy that says that we won't have more than one-year contracts, if that's your question, but I can't tell you that we will sign a long-term contract with anybody on any basis. It depends on the proposal.

Councilman Nutter

Well, you essentially have had a long-term contract with us. 156 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 You signed a contract for one year with three multiple renewals.

Mr. Gurson

Well, that's -- we have that with the City, yes. And the City has the option to terminate it.

Councilman Nutter

Would it have been any difference to you that it was a four-year contract at that time? Same terms and conditions? It's only renewable at our option.

Mr. Gurson

Yes, but the rates change.

Councilman Nutter

The rates change because we've built in a per-month per-member rate escalator, which you've taken full advantage of every year, right?

Mr. Gurson

On that basis, I would say to you that if the economics were the same, we wouldn't object to it, no. 19

Councilman Nutter

Okay. What are our service standards for this contract? What do we require to be provided to the public employees by way of service, by way of conditions, by way of equipment, by way of response?

Ms. Seyda

The service requirements for Rite Aid would be those as were discussed by 157 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 the representatives from Rite Aid. Clearly, it is appropriate for us to better define what those service standards should be and to incorporate them into our agreements with the provider.

Councilman Nutter

So you anticipate laying them out should there be an RFP in the RFP?

Ms. Seyda

I would anticipate laying them out in any case. Whether there's an RFP or there is another one-year renewal, I believe it would still be appropriate for us to do that.

Councilman Nutter

Well, since there are -- since the general counsel takes a position that letters back and forth constitute legal and binding obligations, couldn't the City send a letter to Rite Aid requesting right now certain service standard for the contract that they have, whether it was the contract is authorized back in the flow of letters in late '97 or the contract that was authorized two days ago? We could create service standards tomorrow and send them a letter and say that we want all of your stores to provide X for public employees, and we expect certain things from the 158 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 Rite Aid Corporation in terms of providing service to the City of Philadelphia. That letter could go to them, and they would have the option to respond or not to respond, isn't that correct? Since we've already demonstrated our ability to do that?

Ms. Seyda

I believe that's accurate.

Councilman Nutter

Okay. Miss Seyda, I would like for you, as a representative from the City Administration, to begin a process and a series of discussions about what the service standards should be for this particular contract between the City and its public employees and the Rite Aid Corporation.

Ms. Seyda

So noted.

Councilman Nutter

Thank you. Let me ask you about the stores. Do all the stores have a fax machine?

Mr. Gurson

No, sir.

Councilman Nutter

Is that part of the new technological upgrade you expect to have going forward? Why doesn't every store have a fax machine?

Mr. Hushen

Well, that's -- 159 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586

Councilman Nutter

Is it a cost issue?

Councilman Nutter

Okay.

Mr. Hushen

At this point in time, fax machines are relatively inexpensive.

Councilman Nutter

Yeah, I know.

Mr. Hushen

It's just a matter of usage.

Councilman Nutter

I'm sorry?

Mr. Hushen

A matter of usage. Would physicians, or whoever, fax information back and forth? The newer models --

Councilman Nutter

They might fax it to you if they knew you had a fax machine. Or the employee getting the prescription might fax it to you if they knew you had a fax machine 'cause they could fax it to you in the daytime while at work and would expect to possibly be able to pick up their prescription when they came home.

Mr. Hushen

That's a possibility.

Councilman Nutter

Okay.

Mr. Hushen

It's not something we've done. 160 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586

Councilman Nutter

Okay. Does every store have a list of all the other stores and their hours of operation and their location? You should.

Mr. Hushen

Most have a list of all of the other stores and their phone numbers.

Councilman Nutter

And their hours of operation?

Mr. Hushen

Not their hours of operation.

Mr. Gurson

They are in the phone book, though.

Councilman Nutter

Does every store have a phone book? I mean, why do I have to -- I mean, come on, Mr. Gurson, let's be serious. I walk into one of your stores, I talk to one of your pharmacists or a manager or something and they tell me they don't know where their stores are but I can go look in a phone book?

Mr. Gurson

No, that's not what I was trying to imply at all, sir. It is in our interests to make the locations of our pharmacies very well known. 161 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586

Councilman Nutter

Right.

Mr. Gurson

I can only BUT apologize for the people who treat you rudely or badly, but my answer to your question is --

Councilman Nutter

No, let me say this: They're generally never rude, they generally never treat you badly. They just don't know what to do. They don't think. So I'm not complaining that they're rude or mean or nasty or anything. They just have no answers and don't go the next step.

Mr. Gurson

I understand. That is something we will work to correct.

Councilman Nutter

So the stores today at least have a list of all the other stores and where they are. They don't necessarily know the hours of operation. So if I've got a prescription problem, and the person could tell me legitimately, You could go to X Y Z store, they just don't know if they're open or not.

Mr. Gurson

That is correct.

Councilman Nutter

Okay.

Mr. Gurson

You could also -- and I 162 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 don't offer this to you as a substitute because I would prefer that they would be able to tell you what time the store is open or if it was open at the time you needed it to be open.

Councilman Nutter

Mm-hmm.

Mr. Gurson

You could also call our 1-800 number, which would give you that information.

Councilman Nutter

Or we could call Mr. Hushen.

Mr. Gurson

Yeah, you can call--

Mr. Hushen

I'm in the book.

Mr. Gurson

Or you could call Mr. Hushen.

Councilman Nutter

Let me ask you this question: Is it a part of their training and protocol that if there's an out-of-stock item, that they will call the next closest store to see if that store has the item in stock and try to get it at the location where the customer is, as opposed to sending the customer to chase after it? What is the protocol for that?

Mr. Hushen

That would be the best-case scenario, that is ideally what would -- 163 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586

Councilman Nutter

I didn't ask you that question. I said, what's the protocol.

Mr. Hushen

The protocol is they should call the next closest store to see if have it in stock.

Councilman Nutter

What are they trained to do?

Councilman Nutter

What are they trained to do?

Mr. Hushen

Well, what they're trained to do and what they actually do do sometimes are two different things. They are trained to call the next store to see if it's available.

Councilman Nutter

Okay. Based on some of issues that have been raised in this hearing, and I've asked Miss Seyda to go back and take a look at some service standard issues. Were you aware of many of things that have been raised here today, Mr. Hushen? You have the benefit of you and I and a few other people having a meeting not too long ago, so you've heard about some of my issues. Mr. Gurson didn't have the same pleasurable 164 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 opportunity. But are these common complaints? Have you heard these things before?

Mr. Gurson

Specifically within Philadelphia or generally? The answer to your question is, we run --

Councilman Nutter

I have a unique general concern about Philadelphia.

Mr. Gurson

All right. The answer to your question is we run approximately 4,000 stores. We have -- we do not run any one or all of them perfectly all of the time, and that's why have customer service lines, and that's why we try to train our people to do the right thing. We have the same problems that any business of any size has. Everything is not done absolutely correctly in the eyes of every customer every time.

Councilman Nutter

Well, I understand that and I appreciate that, but I guess my question is: If you've heard about these things in the past, what steps have you taken to either try to rectify them or send out directives and the like? 165 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 For instance, I had occasion to go to a store here in Center City pretty, a prominent location, does a lot of business, a lot of traffic. You happened not to have the generic brand of whatever the thing is I needed that particular day. I'm okay with generics, I happen to believe they are absolutely the same medicine, but it's all right. You didn't have the generic. You decided to give me the brand and charge me for it, and your folks couldn't figure out that that wasn't my problem. I ended up paying for the medicine at the rate -- I wasn't going to get into a big argument with the person at the store. Subsequently, and again, this is before I met Mr. Hushen, so the only person I was left to talk to was Manny Stamatakis, who contacted the operation. They did process a refund. And then a memo went out explaining to the people that if you're out of stock of the generic, give the person the brand and eat the cost. That kind of seemed like a rather common-sensical store manager decision right on the spot. Why should I have to suffer as a result 166 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 of an out-of-stock item?

Mr. Gurson

You should not.

Councilman Nutter

Does that make sense to you?

Mr. Gurson

Absolutely.

Councilman Nutter

All right. Do you have anything add to the record?

Mr. Gurson

No, we just --

Councilman Nutter

About any of these issues?

Mr. Gurson

No, we just thank you for the opportunity to come.

Councilman Nutter

Lastly, let me ask you, with all the stores, especially with the new growth and development, do you have any particular policy as it relates to construction or employment by way of minority enterprises or women enterprises or disadvantaged businesses?

Mr. Gurson

A stated policy? We do business with anybody who --

Councilman Nutter

Stated, unstated.

Mr. Gurson

We do business with anybody, whether they're short or tall, whatever color they are, we do business with them. 167 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586

Councilman Nutter

Okay. Can you provide me with any information on what the results of this open-ended, short/tall, any-color policy has resulted in? How many black contractors have worked in stores or built stores for Rite Aid?

Mr. Gurson

We will look into that and I will try to provide you with that information.

Councilman Nutter

As well as the labor force.

Mr. Gurson

As well as the labor force, yes, sir.

Councilman Nutter

Okay, all right.

Mr. Hushen

Councilman, if I might.

Councilman Nutter

Sure.

Mr. Hushen

We have a variety of minority general contractors that we could provide you. In order to get the subcontractors from the GC's that we do use, we would have to solicit that information from them.

Councilman Nutter

Well, why don't we start at the easy level.

Councilman Nutter

If you built 168 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 x-number of stores or expanded x-number of stores, tell me by store who worked on those places and some identifying remarks regarding the demographics of that population, okay?

Councilman Nutter

All right. Councilwoman Tasco.

Councilwoman Tasco

Do you use minority general contractors in other areas outside of minority communities, or do you just use minority contractors in the minority communities? If you're going to build a Rite Aid at Broad and Champlost or Spencer and Broad, you would probably make sure that there's a general contractor, a minority general contractor there. But if you're going to do in one, say, in the Northeast, what would be your commitment to minority participation?

Mr. Hushen

It's -- usually it's a bid process, Councilwoman.

Councilwoman Tasco

Mm-hmm.

Mr. Hushen

Minority, non-minority are all invited. 169 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586

Councilwoman Tasco

I just want to go back to providing the service. As a result of our concerns raised today, do you plan to -- when you try to improve your computer system, do you plan to provide the computers the capacity -- a program so that they can talk to each other? So that if I go in one Rite Aid and they don't have it, then maybe the clerk or the pharmacist can look on the computer and find out which store might have the medication?

Mr. Gurson

I don't know if we're doing that, but I would hope that, as Chairman Nutter pointed out, that they would use that low technology, the telephone, and pick it up and call the store that was closest by.

Councilman Nutter

Miss Seyda, if I can ask, separate from my request for service standard development, can you get out some additional information directly to all of our public employees about customer service contact issues -- obviously, if it goes out now, it's not a part of the larger open-enrollment information -- or some other communication to public employees about customer-service issues, complaints, 170 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 problems resolution and the like, as it relates to the Rite Aid program.

Ms. Seyda

Yes, we are certainly able and willing to do that.

Councilman Nutter

And at the same time for Mr. Gurson -- it's "Gurson," right?

Mr. Gurson

Gurson with a G, right.

Councilman Nutter

Mr. Gurson and Mr. Hushen. Apparently Eagle just sent out cards not too long ago. Could you at least just give some additional thought to how you might communicate with our public employees as well about these issues of customer service. You seem to be aware that on the card where it says you can call the number during normal operating hours, that might leave the average person to think normal operating hours are either general hours of the store or could be 9 to 5. If you have some additional information or if you can make people generally aware that you run a 24-hour hotline network, that would also be helpful. I would also be interested at a later point in time if you do send out additional 171 COMMERCE & ECONOMIC DEVELOPMENT - BILL NO. 970586 directives, changes in protocol and the like for customer-service issues either because of things you've heard in the past or anything that you might have picked up in today's hearing, I certainly would be interested in any of those changes in policy for some of these customer-service, customer-driven, customer-complaint issues. Is that possible? Again, the stenographer capital pick up nods. The stenographer cannot translate a nod on the record.

Mr. Hushen

I'm sorry. Yes.