Hospital chief financial officers must focus on labor cost--both from staff and executives--and ask relevant questions in order to keep costs under control, according to an opinion piece in Healthcare Finance News.
When WellPoint named Joseph Swedish its new CEO back in 2013, the insurer announced Swedish's salary right off the bat--$1.25 million in salary and as much as $3.75 million in bonuses.
The 10 largest publicly traded insurers paid their top executives a combined $300 million in compensation last year. But because of a little-discussed provision in the Affordable Care Act, they also had to pay $72 million more than the year before in taxes, amounting to an additional $1.3 million in taxes per executive, according to a new report from the Institute for Policy Studies.
Despite the mounting backlash against increasing healthcare CEO pay, attributing it merely to greed is an oversimplification, according to Becker's Hospital Review.
The Service Employees International–United Healthcare Workers West labor union officially shelved two ballot initiatives it sponsored to limit what not-for-profit hospitals in California could charge patients and pay their executives, the Los Angeles Times reported.
Six top executives at Blue Cross Blue Shield of North Carolina earned at least $1 million last year, with its CEO taking home the biggest payout. In a filing with the Department of Insurance, BCBSNC disclosed that executive compensation for its top 10 execs increased by almost 11 percent last year.
Executive compensation is once again making its way in the spotlight with reports that Hospital Corporation of America CEO Richard Bracken received $48 million in pay and stock gains last year.
Board members at two California hospitals recently defended paying their top executives annual salaries of roughly $800,000 each.
The top 10 executives at Carolinas HealthCare System each received more than $1 million in 2012, an 8 percent jump from the previous year.
As they fulfill their charitable mission, nonprofit hospitals and health systems continue to dole out seven-figure compensation packages to their chief executives.