Pay 'em When They're Up, Pay 'em When They're Down - CEO Value Extraction Even at Small Non-Profit Hospitals

To the tune of "Dirty Laundry," by Don Henley, some more of health care's dirty laundry...We have frequently discussed the seemingly unstoppable rise of compensation given to top hired managers of health care organizations.  Their compensation seems to rise regardless of the financial status of their organizations, much less how well their organizations are caring for patients or otherwise fulfilling the mission.  Top hired managers of other organizations, particularly big for-profit corporations, have seen similar enhancements of their personal wealth, leading to the charge that they are acting as "value extractors," rather than responsible leaders.    Justifications for this rise are superficial, often limited to talking points we have repeatedly discussed, (first  here, with additional examples of their use here, here here, here, here, here, here, and here.)  They are:- We have to pay competitive rates  We have to pay enough to retain at least competent executives, given how hard it is to be an executive- Our executives are not merely competitive, but brilliant (and have to be to do such a difficult job). The notion that top hired managers are entitled to rich compensation no matter what now seems to have metastasized to medium-sized and even small US non-profit hospitals and other health care provider organizations.  Three relevant examples have appeared so far in February, 2015, listed in alphabetical order by state.Georgia - Wes...
Source: Health Care Renewal - Category: Health Management Tags: executive compensation hospital systems hospitals St Luke ' s Health System West Georgia Health Source Type: blogs