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February 10, 2013

Salaries of hospital CEOs detailed

(Continued)

MALONE —

Health Tech bundles Ralph’s salary with other services it provides, such as group purchasing power, consulting service and general-efficiency measures. The agreement is negotiated between the hospital’s Board of Directors and Ralph.

Board President Stanley Urban said Health Tech was paid $635,000 in 2010, but he does not know how much of it went for Ralph’s salary because that firm pays her directly.

Urban said Adirondack Health has used Health Tech services for 18 years but recently sent out requests for proposals as the time approached to renew the three-year agreement, to make sure the facility and community was getting the best management package possible.

He said another national firm “even bigger than Health Tech” conducted an appraisal of its needs before drawing up a proposal. But when the board compared the bids, it renewed its agreement with Health Tech, Urban said.

“There is no question” that Adirondack Health is getting its money’s worth with Ralph, he said.

“The board wasn’t going to rubber stamp it,” he said of the contract. “We told them, ‘We’re going to send out RFPs and told them the other company was bringing in a team.

“We ended up renewing with Health Tech because we were satisfied at the end of the process with the price we were paying,” Urban said.

ALICE HYDE MEDICAL CENTER

John Johnson, president and chief executive officer, was paid $339,539 in 2010. He retired in the fall of 2012.

He was replaced by Douglas DiVello, who is paid $246,682 in salary and benefits.

DiVello is not eligible for a bonus until January 2014, according to Cathlyn Lamitie, director of communications and philanthropy at Alice Hyde. The bonus will be tied to the hospital’s performance and is at the discretion of the Board of Trustees, Lamitie said.

“When we look to recruit, we contract with a recruiting firm to find a pool of candidates because it’s difficult to find a pool of people on your own,” said Dean Johnston, president of the Board of Trustees and a member of the hospital’s Compensation Committee.

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