In the midst of public scrutiny over the paychecks of healthcare executives at nonprofit institutions, a new report reveals that nearly 20 executives in Oregon hospitals earned more than $1 million in 2009.
The Lund Report reviewed IRS financial disclosures of nonprofit hospitals in Oregon and found that although hospital profit margins were slightly down (due to increased uncompensated care and reimbursement changes), the executives had paychecks in the seven-figure range per year.
For example, Russ Danielson, vice president and CEO for Providence Health & Services, statewide was the highest paid Oregon hospital executive in 2009 with $1.4 million in total compensation. Larry Mullins, president and CEO of Good Samaritan Hospital in Corvallis, and Dr. George Brown, president and CEO of Legacy Health System, each earned $1 million.
Consumers often express outcry over million-dollar executive compensation, as the industry attempts to cut costs. Hospitals often respond that the executive pay is warranted because their executives possess degrees, skills, and experience needed.