8/7/2019 Payers & Providers California Edition March 10, 2011

1/6

!!

!"#$$

!%&

!'(&)*+

!,

!'*-./0)*+

!'1%2/+3/456

!778

Californias district hospital chief executiveof cers often earn signi cantly less than theircounterparts in the non-pro t private sector,according to compensation data released lastweek by the state controllers of ce.

Of the 51hospitaldistricts thatsubmittedreports to theof ce of CaliforniaControllerJohn Chiang ,38 have CEOsor executivedirectors whoreceive someform of compensation,and 27oversaw thedaily management of a hospital within theirdistrict in the 2009 reporting year. The averagedistrict CEO earned base cash compensationof $230,876 in 2009, and overallcompensation of $245,947.

Statewide, the average non-pro t hospitalCEO in California excluding districthospitals earned base compensation of $514,237 and overall compensation of $732,004, according to salary data of morethan 110 CEOs accumulated and analyzed by

Payers & Providers last year. Those gureswere primarily for 2007 and 2008.

The compensation gures provided byChiangs of ce are skewed in that baseincome included not only salary but bonuses,

car stipends andother forms of cash paymentconsideredtaxable income,according tostate of cials.Taxablecompensationon 990 taxreturns led byprivate sectorhospitals isbroken intoseparatecategories. As aresult,

additional compensation among the districtCEOs is a fraction of that reported by theirprivate sector counterparts $15,071 versus$217,767.

For the most part, district hospitalleadership manage facilities far smaller thanthe typical acute care hospital in California.According to the Of ce of Statewide HealthPlanning and Development , the average

91*(2!:)(2;3?-+/1>@

!9(4

8/7/2019 Payers & Providers California Edition March 10, 2011

2/6

!!

!"#$$

!%&

!'(&)*+

!,

!'*-./0)*+

!'1%2/+3/456

!778

Payers & Providers Page 2

Top Placement...Bottomless Potentia l

Advertise Here

(877) 248-2360, ext. 2

In Brief

Tri-City ExpandsTertiary Services

Tri-City Medical Center inOceanside has announced plans tosingnificantly expand its tertiary

care services in the cancer,cardiovascular and orthopedicspecialties.

The hospital opened acardiovascular health Iinstitute latelast year, and plans to open anortopedic and spine Institute thisspring, followed by a cancerinstitute at a later date.

The hospital has recruited twospecialty surgeons: John Regan,M.D. , an orthopedic specialist whoonce headed the Cedars-SinaiInstitute for Spinal Disorders atCedars-Sinai Medical Center in LosAngeles; and David Perkowski ,M.D. , a cardiac surgeon and one of

the first practitioners of procedureson beating hearts, known as anoff-pump procedure.

"Our vision is to be one of thebest hospitals in the nation by2015, said Tri-City Chief ExecutiveOfficer Larry Anderson . By addingthese pioneers in medicine toour already outstanding medicalstaff, we are making significantprogress to that end.

Skilled Leases FiveFacilities

Foothill Ranch-based SkilledHealthcare Group has reachedterms to lease out the five nursingfacilities it owns in HumboldtCounty to Brius Healthcare LLC .

Under terms of the deal, asubsidiary of Skilled will lease thefacilities to Brius for 10 years, withan option to renew for two more10- year terms. The subsidiary willcontinue to own the properties.

Continued on Page 3

NEWS

CEO/COO/CFO COMPENSATIONPAYERS & PROVIDERS EXCLUSIVE WHITE PA

COMPENSATION ON NEARLY 300 OF CALIFORNIAsHEALTHCARE CEOs, COOs & CFOs ARE AVAILABLE

Call (877) 248-2360, ext. 2OR

CLICK HEREto Order

Compensation (Continued from Page One)

hospital size in California in 2009 was 208licensed beds. The average size of a districthospital that submitted data to Chiangs of ceis just 114 beds, while nearly a third of facilities reporting data have fewer than 50licensed beds.

However, the average compensation perbed among the district hospital CEOs is$4,393, compared to $4,102 among the not-for-pro t hospital CEOs suggesting a distinctsalary oor for executives willing to managethese facilities.

Many of our hospitals are in rural areas,but many executives want upper-tier salariesfor those positions, said Christine Chapman ,director of member services for the

Association of California HealthcareDistricts , a lobbying group for districthospitals.

Meanwhile, there was a signi cant gulf insalaries between CEOs of district hospitals inrural areas and larger facilities in urban orsuburban settings. In the latter instance, manyof them earned salaries matching CEOs in theprivate sector.

The highest-paid district hospital CEOwhose data has been posted by Chiangsof ce is Nancy Farber , the longtime CEO of Washington Township Hospital District . Thatentity operates 359-bed Washington Hospital

Healthcare System in Fremont, a Bay Areasuburb. She earned $878,593 in base cashcompensation, and additional compensationof $31,486. However, Farbers per-bedcompensation for the 359-bed facility is$2,521, far below the average for district andprivate sector non-pro t facilities.

District spokesman Christopher Brown noted that the nancial success of the hospitalallowed it to spend some $75 million onuncompensated care in 2009. Washingtonposted a surplus of about $42 million that

same year, according to OSHPD data.Youd be hard pressed to nd another

hospital or, for that matter, a special districthospital that has been as nancially successfulas we have, Brown said. He added that thefailure of other districts to report their nanciadata put Farbers compensation at the top of the list.

Indeed, the district believed to employ thehighest-paid CEO, Palomar-Pomerado HealthSystem in San Diego County, did not yet haveits compensation data posted on its websitedue to formatting issues, con rmed of cialswith both the district and the controllersof ce.

According to a September 2010 report bythe San Diego Union-Tribune , Palomar-Pomerado CEO Michael Covert earned $1.1million in compensation for 2009, including abase salary of $736,000 and a bonus of morethan $238,000. With 637 licensed beds ontwo campuses, Palomar-Pomerado is thelargest hospital district in California.

Many district CEOs earned six- guresalaries for overseeing districts that no longeroperate hospitals, their acute care facilitieshaving been closed down or leased to privateoperators. Many of those districts function asphilanthropic organizations, using theirannual tax levies to fund healthcare programs

within the district or contributing them to theoperations of the hospitals managed by thethird parties.

Marin Healthcare District CEO LeeDomanico was the highest-paid among thatgroup of CEOs, earning base compensation of $581,836 and no additional pay.

However, Domanicos situation wasunique: the former CEO of El Camino Hospitaand USC University Medical Center was hired

Continued on Next Page

https://www.managedcarestore.com/pandp/p&pwhitepapers.htmhttps://www.managedcarestore.com/pandp/p&pwhitepapers.htmhttps://www.managedcarestore.com/pandp/p&pwhitepapers.htmhttps://www.managedcarestore.com/pandp/p&pwhitepapers.htmhttps://www.managedcarestore.com/pandp/p&pwhitepapers.htmhttps://www.managedcarestore.com/pandp/p&pwhitepapers.htmhttps://www.managedcarestore.com/pandp/p&pwhitepapers.htmhttps://www.managedcarestore.com/pandp/p&pwhitepapers.htmhttps://www.managedcarestore.com/pandp/p&pwhitepapers.htm

8/7/2019 Payers & Providers California Edition March 10, 2011

3/6

!!

!"#$$

!%&

!'(&)*+

!,

!'*-./0)*+

!'1%2/+3/456

!778

Page 3Payers & Providers

Longer ALOS!*

Advertise Here

(877) 248-2360, ext. 2

*For our ads, not your hospital

NEWS

In Brief

"Our company is lookingforward to working together withthe medical community inHumboldt County to deliver theexcellent patient care Brius isknown for," said Brius Chief Executive Officer Shlomo Rechnitz ."We're honored to have theopportunity to make a difference."

The transfer, which isexpected to close next month,appears to be a strategic retreatfrom the region for Skilled, whichcontrols all but a handful of nursing home beds in the ruralcounty.

Last July, a Humboldt Countyjury ordered the firm to pay $671million in damages stemming froma class-action suit about how itstaffed 22 of its properties inCalifornia. Skilled settled the suitin September, and also agreed withstate and county prosecutors to aninjunction to maintain minimumstaffing levels at many of itsfacilities in California.

Skilled had been accused of failing to provide the state-mandated minimum of 3.2 hours of nursing per patient day, and falselyadvertising that it had.

Skilled officials said the movewont hurt the firms profitability,but will reduce annual revenue thisyear by about 2.5%.

CHA Comes OutAgainst Nurse Ratio Bill

The California Hospital

Association has officially taken aposition against the passage of Senate Bill 554.

Authored by Sen. Leland Yee ,D-San Francisco and sponsored bythe California Nurses Association ,the bill would treat non-compliance with the states nursestaffing ratios much as a patient-endangering medical error. itwould allow the the CaliforniaDepartment of Public Health toissue as much as a $10,000administrative penalty for eachviolation and correction failure.

HEALTHCARES BEST ADVERTISING VA]

PAYERS & PROVIDERS reaches 5,000 hospital, health plan and nonpro t executives statewide. There is no better venue for marketing

your organization or conference, or recruiting new staff.

LEARN MOREHERE

OR CALL (877) 248-2360 ext. 2

Oakland-based Kaiser Permanente has beennamed the top company on the DiversityIncsTop 50 Companies For Diversity list.

Kaiser has been on the list since 2006,and was ranked fourth last year. It beat 535other companies for the top spot.

Among its accomplishments: 25% of itsregional presidents are African-American;25% are Asian-American and half are women.

"As an organization, we serve a verydiverse population, and from our board andleadership to our frontline employees, we

understand and value diversity, said KaiserCEO George Halvorson.

Kaiser also made the DiversityInc.s top 1for recruitment of Latinos, African-Americansand Asian-Americans. DiversityInc CEO LukVisconti said Kaiser understands effectivehealthcare delivery is tied to having a diversestaff.

In a statement, Kaiser said its efforts goback to operating the rst racially integratedhospital in the United States in the 1940s.

Compensation (Continued from Page Two)

by the district in early 2009 in order tooversee the transition of 235-bed MarinGeneral Hospital in Greenbrae back into itshands. The facility had been operated bySutter Health for years, but a bitter legaldispute with the district over how surplusfunds were being disbursed led to Sutteragreeing to end its long-term lease inmid-2010.

This is not a situation where you can justadd water and stir. Suddenly you have anorganization with just (a handful of)employees running a signi cant hospital, saiddistrict spokesman Jon Friedenberg . Hesecured nancing, built an executive team andmade everything that had to happen tooperate this hospital happen.

Chiang, rst elected controller in 2006and reelected by a wide margin last year, wasprompted by the recent salary scandals in theCity of Bell to rewrite his agencys rules aboutthe submission of salary data from cities,counties, special districts and other publicagencies. In the past, they were only requiredto submit their payroll expenses as a lump

sum, said Chiang spokesman GarinCasaleggio. Now, they are required tosubmit them for each individual position

within an agency, which are then posted onits website.This gives a much better snapshot of

compensation, and allows the public tocompare salaries and determine whetherthey are getting value for the taxes theypay, Casaleggio said.

Less than 100 agencies of the morethan 3,000 required to report salary data arenow considered to be non-compliant withreporting, according to Casaleggio. But theycontain some notable names among thehealthcare entities.

Among those that have not reported

data are Alameda County Medical Center , a475-bed facility in the heart of Oakland;,and Hemet Valley Health District , whichoperates 415-bed Hemet Valley MedicalCenter and 84-bed Menifee Valley MedicalCenter . Of cials with those districts did notimmediately respond to phone calls seekingcomment.

Kaiser Wins Top Diversity AwardOrganization Tops DiversityIncs List of Companies

http://payersandproviders.com/advertise.phphttp://payersandproviders.com/advertise.phphttp://payersandproviders.com/advertise.phphttp://payersandproviders.com/advertise.phphttp://payersandproviders.com/advertise.phphttp://payersandproviders.com/advertise.phphttp://payersandproviders.com/advertise.phphttp://payersandproviders.com/advertise.phphttp://payersandproviders.com/advertise.phphttp://payersandproviders.com/advertise.phphttp://payersandproviders.com/advertise.php

8/7/2019 Payers & Providers California Edition March 10, 2011

4/6

!!

!"#$$

!%&

!'(&)*+

!,

!'*-./0)*+

!'1%2/+3/456

!778

Payers & Providers Page 4

Maybe the uninsured could learn somethingfrom Egyptians and the uprising occuringelsewhere in the Arab world. At a timewhen the health reform granting most of theuninsured access to medical care is beingthreatened, protests by the uninsuredthemselves are nowhere tobe seen.

In 2009, astaggering 51 millionAmericans had no healthinsurance. The UrbanInstitute estimates that 400

of them die each week dueto lack of access to care.However, instead of pouring into the streets toprotest, the uninsured leavethe loudest push-back to(well-insured) politicalpartisans.

One in sixAmericans is nowuninsured. Where are they?Their faces and voices andnames are missed. At a hearing ledby Sen. Tom Coburn , an Oklahoma

Republican, a sobbing, middle-agedwoman confessed she couldntafford care for her brain-injured husband.Coburn, a physician, glibly responded thatthe idea that government is the solution toour problemsis very inaccurate. Thepartisan Republican crowd applauded.

An estimated 690,000 Oklahomanshave no health insurance. Why were so fewin the room? Why did hundreds of them notjam into Coburns office the next day? Whydo they not continue to tell their stories?

Like the ruling elite in Egypt orBahrain, who genuinely dont comprehend

the problems of the average family,Republicans are more likely thanDemocrats to believe that the uninsuredreally dont have any trouble finding care.

The political and legal peril in whichhealth reform finds itself is attributable tothe failure of the uninsured to visiblyadvocate on their own behal f. Thosewithout health insurance have allowed theissue to become a referendum on BigGovernment. And they have left the heavywork of lobbying against repeal to the biginsurance companies such as Aetna ,

Humana , UnitedHealth Group and WellPoWorse, while the Institute of

Medicine characterizes the consequences oflack of access to care as needless illness,suffering, and even death, it is Republicanphysicians in Congress who brazenly lead th

effort to repeal care coverageBy coincidence, there ar

about the same number of elderly on Medicare as thereare uninsured. Egyptiansunderstand the power of anaroused populace. Do the

uninsured?In red states and bluestates in 2012, there will becongressional districts andsenatorial races up for grabsand a contest for thepresidency featuring a manwho made a historic effort otheir behalf. Republicans hanever put forth a seriousproposal to provide access to

care for all. Will they suffer anconsequences?

If anyone understands the power

individuals coming together to makedemands on their own behalf, it is ablack man who started his career as acommunity organizer on Chicagos SouthSide. Yet rather than rally the uninsured,President Obama has allowed Republicansframe the issue as a debate over thecommerce clause of the Constitution.

The fight to retain actual funding fothe expanded coverage in the Affordable CaAct is just beginning. It is a battle thatDemocrats can win only if Americansunderstand that the health and lives of theirfriends, neighbors and relatives is at stake.

For that to happen, those whose lives aremost intimately affected must first stand upfor themselves.

OPINION

Its Time To March Like An EgyptianUninsured Should Take to the Streets to Save Reform

ByMichael

Millenson

Michael Millenson is president of HealthQuality Advisors in Highland Park, Ill. He is amember of the Midwest edition of the Payers& Providers editorial board.

9-21:)!;6

!31*+0(&

!%&

!'(&)*+!,

!'*-./0)*+

!'1%2/+3/456

!778?!@4

!(441(2

!/40/./01(2

!+1%+A*/=B/-4!/+

!CDD

!(!&)(*

!EC$FD!/4

!%12G

!1=

!B-

!$#

!+1%+A*/%)*+H?!3)!8(:0)4

!]*-1=

^-++!]-20%)*56

!

8/7/2019 Payers & Providers California Edition March 10, 2011

5/6

!!

!"#$$

!%&

!'(&)*+

!,

!'*-./0)*+

!'1%2/+3/456

!778

MARKETPLACE/EMPLOYMENTPayers & Providers Page 5

!

! !

"#$%&'!(!"&)*+,%&'!#-,!./01!2&%'%-3!44)5-,3#67%!8-3%]+*%:!83!,%653'!.#&9;!>!+-!3;%!"#$%&'!(!"&)*+,%&'!?#3+)-#7!%,+3+)-:!!

05&!&%#,%&'!#7@#$'!@#-3!3)!A-)@!@;#3!+'!)-!3;%!B+-,'!)C!;%#73;9#&%D'!9E'5+3%!%F%953+*%':!/)-C%&%-9%'!#-,!3,%!%*%-3'!)C3%-)-7$!#77)@!C)&!9&59+#7!B)B%-3'!3)!+-3%]!@+3;!3;%'%!3;)5G;3!7%#,%&':!H+3;!4)5-,3#67%!8-3%]+*%I!$)5D77!953!3;&)5G;!3;%!2&%7+B+-#&+%'!#-,!+BB%,+#3%7$!A-)@!@;#3D'!)-!3;%+&!B+-,:!!

J*%&$!4)5-,3#67%!8-3%]+*%!@+77!C%#35&%!#!K(L!'%''+)-!9)-,593%,!6$!"#$%&'!(!"&)*+,%&'!"567+';%&!4)-!M;+-AB#-:!N+'!,%9#,%'!)C!%F2%&+%-9%!+-!O)5&-#7+'B!#-,!3;%!;%#73;9#&%!+-,5'3&$!@+77!2&)B+'%!9)-9+'%!#-,!&%*%#7+-G!+-3%&*+%@':!

P)2+9'!C)&!529)B+-G!4)5-,3#67%!8-3%]+*%'!+-975,%Q!!

!8-3%G%,!M$'3%B'!*':!"&+*#3%!"]+9%Q!!P)!@;#3!,%G&%%!@+77!2;$'+9+#-'!-)3!#7&%#,$!+-!7#&G%&!B%,+9#7!G&)52'!)&!+-3%G%;%#73;!'$'3%B'!&%B#+-!+-!2&+*#3%!2]+9%!,5&+-G!3;+'!,%9#,%I!#-,!@;$:!H;#3!#&%!3;%!#,*#-3#G%'I!,+'#,*#-3#G%'!#-,!+B27+9#3+)-'!+-!3),#$R'!%-*+&)-B%-3S!!

!

! .%,+9#+,!"7#-'!#-,!T%7+*%&$!M$'3%B'Q !!N)@!B59;!+'!3;%+&!97)53!G&)@+-G!#'!.%,+9#+,!%-&)77B%-3!+'!2&)O%93%,!3)!')#&!#'!2#&3!)C!&%C)&BS!H+77!.%,+9#+,!+-9&%#'+-G7$!6%!5'%,!#'!#!*%;+97%!C)&!'%33+-G!;%#73;9#&%!2)7+9$S!P)!@;#3!,%G&%%!@+77;%#73;!27#-'!#-,!'$'3%B'!3&$!3)!+-9&%#'%!';#&%!#-,!9)-9%-3+)-!+-!3;+'!B#&A%3S!!

!

!L99)5-3#67%!/#&%!0&G#-+U#3+)-'Q !!L&%!3;%$!)*%&;$2%,S!H;#3!3$2%!)C!;%#73;!9#&%!'$'3%B'!';)57,!6%!25&'5+-G!L/0'I!#-,!@;#3!'$'3%B'!';)57,!6%!'+33+-G!)-!3;%!'+,%7+-%'!C)&!-)@S!N)@!3+%,!+'!3;%!L/0!B)*%B%-3!3)!3;%!'599%''!)&!C#+75&%!)C!.%,+9#&%!L/0!2+7)3'S!T)%'!3;%!,%C+-+3+)-!)C!L/0'!-%%,!B)&%!'2%9+C+9+3$I!)&!+'!+3!2&%C%C%!3)!;#*%!#!6+G!3%-3!)C!+-975'+)-S!

T)!$)5!@#-3!3)!2&)2)'%!)&!2#&3+9+2#3%!+-!#!C535&%!4)5-,3#67%!8-3%]+*%S!"#&3+9+2#3+)-!+'!%-3+&%7$!)-7+-%I!@+3;!#!9)BB+3B-)!B)&%!3;#-!)-%!;)5&:!/#77!4)-!M;+-AB#-!#3!VWWE

8/7/2019 Payers & Providers California Edition March 10, 2011

6/6

Payers & Providers MARKETPLACE/EMPLOYMENT Page 6

SEEKING A NEW POSITION?

CAN HELP.We publish advertisements for those seeking

new careeropportunities for just $1.25 a word.

If you prefer discretion, well handle allresponses to your ad.

Call (877) 248-2360, ext. 2, or e-mailadvertise@payersandproviders.com.