The Santa Clara County (Calif.) Superior Court ruled a local ballot initiative from 2012 that would have capped the pay of executives at El Camino Hospital, a nonprofit, public hospital in Mountain View, Calif., was unconstitutional. Originally, 52 percent of people within the hospital’s county voted to approve Measure M, which would have limited executive compensation to no more than twice the salary of California’s governor.
Compensation has always been a sensitive topic for hospital executives, and although the El Camino ballot initiative fell by the wayside, the spotlight on executive pay only intensified.
In October, Harvard University researchers published a study in JAMA Internal Medicine, which looked at the compensation data of 1,877 CEOs at 2,681 private, nonprofit U.S. hospitals. Data came from the hospitals’ 2009 Form 990s. The researchers found nonprofit hospital CEOs had a mean compensation of $595,781 and a median compensation of $404,938. Further, they found an association of higher hospital CEO compensation with higher levels of advanced technology — and no significant association between CEO compensation and the hospital’s performance on quality, mortality or readmission rates.
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