IRS rules increase CFO compensation

Hospital CFOs in California earn overall compensation averaging more than $352,000 a year, according to Payers & Providers.

The publication surveyed more than 170 hospital and health plan CFOs and COOs statewide, using tax returns, proxy statements and minutes from the University of California Board of Regents.

The highest-paid CFO was Edward Prunchunas of Cedars-Sinai Medical Center in Los Angeles. His total compensation totaled more than $1 million in 2007, the most recent year for which data was available.

Big upward shifts in total compensation occurred in 2008, when IRS regulations required more transparency when reporting retirement and pension benefits. For example, the average additional compensation for CFOs was $127,639 in 2008 and 2009, but just $84,108 when the 2006 and 2007 data is figured in.

The change resulted in a 42 percent increase in compensation to Frank Guarrera, CFO of the Motion Picture and Television Fund (MPTF) in Woodland Hills, from $503,534 in 2007 to $711,325 in 2008. However, an MPTF official noted that without the changes in reporting, his overall total compensation would have increased only 6 percent.

In another example, Cyrus Dah, CFO of Dameron Hospital in Stockton, had additional compensation of $295,085 in 2008, vs. $166,783 in 2007.

For more:
- read the Payers & Providers article
- read the Becker's Hospital Review article on CFO compensation 

Suggested Articles

Humana filed suit Friday against more than a dozen generic drugmakers alleging the companies engaged in price fixing.

Medicare Advantage open enrollment kicked off last week, and insurers are taking new approaches to marketing a slate of supplemental benefit options. 

Health IT company Cerner announced a definitive agreement to acquire IT consulting and engineering firm AbleVets as a wholly owned subsidiary.