By Barbara Hoey
With so much emphasis on budget-cutting, facility closures, and the trimming of Medicare and Medicaid spending, executive compensation in the health care industry has been coming under ever-increasing scrutiny. Early this month, Governor Cuomo announced the formation of a task force to examine executive compensation within non-profit health care institutions in New York. This followed on the heels of a NY Times article on the million-dollar salary of the CEO of a Medicaid-financed non-profit that serves the developmentally disabled, who allegedly charged the organization more than $50,000 for his daughter’s living expenses while she was in graduate school in New York for a year.
Before the task force comes knocking, now is the time for non-profit (and other) healthcare organizations to do their homework. Among other things, consider having your Human Resources and Compensation Committee review comparative compensation data and document the basis for the compensation packages for your executive team.
Photo credit: Matthew John Hollinshead