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February 10, 2013

Salaries of hospital CEOs detailed

(Continued)

MALONE —

“This salary information is given to the Executive Committee of the hospital’s Board of Directors. The group makes an appropriate determination, based on experience, expectations, budget and specific facility requirements,” Hooper said.

The committee then makes a recommendation to the full board, and the candidate is voted upon, she said.

ECH is a full-service hospital, but it is also deemed a critical-access hospital by the federal government, Hooper said.

That designation means it cannot have more than 25 beds and must provide daily, around-the-clock emergency services and treat patients there no longer than 96 hours (four days).

“Essentially, the government realizes that having hospitals in rural areas is important,” Hooper said. “Therefore, it created the critical-access status a number of years ago to ensure that the facilities in those rural areas receive cost-based reimbursement from Medicare.”

FLETCHER ALLEN HEALTH CARE

Fletcher Allen is affiliated with Moses-Ludington Hospital and Alice Hyde and has partnerships with CVPH and ECH.

Fletcher Allen’s CEO in 2010 was Dr. Melinda Estes, who was paid $1,440,093. She left for a position in Kansas City in August 2011, which is when Dr. John Brumsted was hired as president and CEO of Fletcher Allen Partners and Fletcher Allen Health Care. His starting salary was $749,031, according to Mike Noble, communications director at the Vermont hospital.

“I’ve learned it’s important to look at the scope of responsibilities because Fletcher Allen is a complex organization,” said Don Gilbert, chair of the Compensation Committee that hires the facility’s top administrators.

“We try to compare Fletcher Allen to other similar facilities, but we are an academic medical center,” he said. “There are 130 of them across the country, but there is nothing comparable in the region, so that makes it a challenge” to research and determine a compensation package.

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