Fletcher Allen paid its CEO $1.4 million in 2010.
CEOs are in charge of managing hundreds of employees while adhering to stringent federal and state regulations, providing overall health care to a community and managing budgets that range from $13 million to $280 million locally.
“The responsibilities of a CEO have exploded in the last four years,” said William Van Slyke of the Healthcare Association of New York State, an organization that represents hospitals and health-care systems across the state.
“Until the last several years, the CEO of a hospital did the best they could to provide quality care for the best value. But that’s changed now with the reimbursement system, where the hospital is responsible for the health of everyone in their community, and they are penalized if their health service falls off,” he said.
LINK TO REIMBURSEMENTS
Van Slyke explained that new regulations require hospitals to conduct patient surveys about the care received and observations on topics such as communicating with doctors and nurses, learning about medications, the staff’s responsiveness to their needs, the cleanliness and noise level of the hospital and more.
The results of Hospital Care Quality Information from the Consumer Perspective surveys determine a facility’s Medicaid and Medicare reimbursements.
“If someone doesn’t like the food or doesn’t like the drapes, the hospital can lose reimbursements,” Van Slyke said.
“If the CEOs don’t do a good job, they lose money, so there has been a change of focus that adds to the responsibility of the CEO position.”
Van Slyke said compensation for these professionals may become even more competitive and lucrative because fewer and fewer people are qualified for the position.
“Being a hospital CEO, especially in the state of New York, is complex and demanding job. There is an extraordinarily limited pool of candidates, and that increases their value.