RI legislature may limit non-profit hospital execs' pay

In most cases, a non-profit hospital executive's pay is between them and the board. Still, if it's a high number, it can create a lot of, let us say, misunderstandings when it shows up in a newspaper or a report. In fact, big numbers make some people very unhappy--such as Rhode Island state Senator Michael McCaffrey.

Sen. McCaffrey is behind legislation that would cap non-profit hospital exec salaries at 110 percent of the average salary for similar positions at comparable healthcare organizations in the region. The bill has received the support of the full state Senate, a step toward approving a bill that would possibly be the first in the country to impose such regulations.

McCaffrey is reacting to reports that the president of the state's four-hospital Lifespan system received more than $3 million in benefits and salary during the previous two years, while other Rhode Island non-profit hospital execs got more than $1 million annually.

Unfortunately for such execs, McCaffrey is not the only one with a bee in his bonnet on this issue. Sen. Chuck Grassley (R-IA), perennial non-profit hospital scourge, has criticized non-profit hospital exec salaries as well. This is likely to be a hot issue as reform proceeds, seeing as it's a matter of symbolic importance to the public.

To learn more about  this issue:
- read this Modern Healthcare piece (reg. req.)

Related Articles:
Grassley targets salaries for non-profit hospital execs
U of Pittsburgh execs face 25 percent pay cut
UPMC CEOs $3.95M pay draws attention

Suggested Articles

The profit margins and management of Community Health Group raise questions about oversight of managed care insurers.

Financial experts are warning practices about the pitfalls of promoting medical credit cards to their patients.

A proposed rule issued by HHS on Tuesday would expand short-term coverage, a move Seema Verma said will have "virtually no impact" on ACA premiums.