With increasing scrutiny of hospital CEO compensation packages, more members of the public are asking whether the generous salaries exist, are warranted, and whether they should be regulated.
A proposal by New Democratic Party Leader Andrea Horwath in Ontario would cap hospital CEO annual salary at $418,000, according to Ontario Hospital Association President and CEO Tom Closson in an opinion article, published in the Toronto Star yesterday.
However, as Closson noted, capping compensation levels could hurt the recruitment of talented chief execs necessary to lead healthcare organizations.
"[T]he cap on CEO salaries proposed by Horwath would apply only to a small number of individuals, wouldn't save much money, and would negatively affect the recruitment and retention of highly competent senior hospital leaders," Closson wrote.
The proposal poses an interesting approach to cutting hospital costs, which begs the question if the United States should follow the example of its neighbor to the north.
As Closson also pointed out, executive pay has a wide range.
For instance in the United States, Montana hospital CEO salaries and bonus payments range from $250,000 to $580,000, reports The Missoulian. In fiscal years 2009 to 2010, chief execs at hospitals in smaller towns often earned $200,000 a year, and executives of city hospitals often took in up to $500,000, according to the article.
|
Hospital |
Title |
Name |
Compensation |
|
Billings Clinic |
CEO |
Nick Wolter |
$581,000 |
|
Benefis Hospital |
CEO |
John Goodnow |
$579,000 |
|
Northern Montana Hospital |
CEO |
David Henry |
$354,000 |
|
St. James Healthcare |
CEO |
Chuck Wright |
$249,000 |
National director of health care for the Hay Group C.J. Bolster said, "Even in Montana, there's still a national search. ... By and large, they are pretty much tied to the bulk of the national trends." Hospital boards are looking to recruit and retain the best talent for their hospital, according to Bolster.
For more information:
- read the Toronto Star opinion piece
- read the Missoulian article
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