What Hospital Executives Earn

This year was the first year that hospitals in Washington State were required to report their executives’ compensation.  I did not conduct this research independently. The figures herein are what the hospitals themselves reported to the Department of Health.  The complete list of executive pay in not-for-profit hospitals can be found on The Department of Health website:  http://www.doh.wa.gov/DataandStatisticalReports/HealthcareinWashington/HospitalandPatientData/HospitalFinancialData/HospitalEmployeeCompensation/2012HospitalEmployeeCompensationReports.aspx

For profit hospitals were not required to report their executive compensation, presumably for proprietary reasons. Some hospitals and hospital systems apparently chose not to report. See the list of non-responders at the end of this article.

These salaries raise more questions than answers.  The differences between hospitals are staggering and incomprehensible. I offer questions for Boards of Directors and consumers at the end of the article.

We have several millionaires. Some in places I would not have predicted. In order of magnitude:

Gary Kaplan, MD, Virginia Mason Medical Center, Seattle                   $3,737,678

John Evans, Jr., Central Washington Medical Center, Wenatchee   $1,766,084

Rich Roodman, Valley Medical Center, Renton                                          $1,285,860                                              

Elaine Couture, Providence Sacred Heart, Spokane                                $1,034,994

Medrice Caluccio, Providence St. Peter, Olympia                                     $1,010,027

Top Seattle Hospitals

The following is the compensation details only for the top administrator at the four top Seattle hospitals.  Swedish has several sites. Details on other executives’ compensation are included in the compensation data on the DOH website referenced above.

Harborview Medical Center: 

Eileen Whalen, base salary $485,000, bonus incentive -0-, other $1,692, retirement/deferred compensation $61,550, non-taxable benefits, $19, 268 Total:  $567,599

Swedish Medical Center: First Hill

Todd Strumwasser, base $435,848, bonus incentive $2500, other $71,000, retirement/deferred $76,928, nontaxable benefits $21,928 Total:  $607,702

Swedish Medical Center:  Cherry Hill

 Rayburn Lewis, base $303,584, bonus incentive $24, other $51,875, retire/deferred $51,194, non taxable $17,713 Total: $424,390

 Swedish Medical Center: Ballard

 Jennifer Graves, base $241,620, other -0-, bonus incentive $37,500 retire/deferred $12,882, nontaxable $11,245 Total: $303,187

 University of Washington Medical Center: 

 Stephen Zieniewicz, base $518,405, bonus -0-, other $1692, retire/deferred $61,793, non taxable $23,942, Total:  $605,832

 Virginia Mason Medical Center

Gary Kaplan, MD base $1,039,978, bonus incentive $449,871, other $17,788, retire/deferred $2,199,932, non-taxable $30,109 Total: $3,737,678

 Other State Hospitals and Medical Centers

Valley Medical Center, Renton, Washington

 Rich Roodman, base $706,575, bonus incentive $487,105, other $33,306, retire/deferred $32,201, nontaxable $26,471. Total:  $1,285,860

Evergreen Medical Center, Bellevue

Robert Malte, base $592,423, bonus incentive -0-, other $51,581, retire/deferred $194,960, nontaxable $4,272, Total:  $843,236

Providence Sacred Heart, Spokane

Elaine Couture, base $360,667, bonus incentive $592,708, other $17,901, retire/deferred $46,618, nontaxable $17,100 Total: $1,034,994

Providence St. Peter, Olympia

Medrice Caluccio base $417, bonus incentive $141,498, other $17,577, retire/deferred $419,464, non taxable $15,710 Total:  $1,010,027

Central Washington Medical Center, Wenatchee

John Evans, Jr. base $141,598, bonus incentive -0-, other $1,491,778, retire/deferred $127,110 nontaxable $5,597 Total:  $1,766,084

Smaller Hospitals: Top Administrators Total Salaries

Lake Chelan                                                       $177,242

Forks                                                                     $217,892

Lourdes Medical Center, Pasco                 $823,668

Skagit County Hospital, Anacortes           $378,386

Yakima Valley Memorial Hospital            $565,441

Kittitas Valley Hospital, Ellensburg         $277,674

Kadlac Medical Center, Richland              $879,058

Walla Walla General Hospital                   $393,221

Shriners’ Hospital for Children                  $144,910 (Spokane)

Mid-Valley Hospital, Omak                        $159,972

Hospitals Not Reporting

For profit hospitals were not required to report, presumably for proprietary reasons.  Other hospital and health systems apparently chose not to report.  All these hospitals accept public money in the form of Medicaid and Medicare money.  There were some health systems that were not abundantly clear about who made what at which hospital, such as Multicare Health System out of Tacoma.  It was not clear what was Multicare, Mary Bridge Children’s Hospital and their other hospitals, so they were not included here. You can check them online at the DOH website.

Not reporting: 

Overlake Medical Center, Bellevue

Seattle Children’s Hospital

Seattle Cancer Care Alliance

Peace Health Hospitals

Franciscan Health System Hospitals

It’s Time for Accountability

Each of these organizations has a Board of Directors, Trustees or Commissioners.  You can go to each hospital website. If you do not easily find the list of their Boards of Directors/Trustees/Commissioners, you can type in “Board of Directors” in the search function on their website and the information will come up.

For example, here is the list of the Board of Trustees for Virginia Mason. https://www.virginiamason.org/BoardMembers

Swedish:  http://www.swedish.org/About/Overview/Leadership—Governance/Community-Board#axzz2WpWdCSEa

University of Washington Medical Center:  http://www.uwmedicine.org/Global/About/Pages/UWMedicineBoard.aspx

Harborview:  http://www.uwmedicine.org/Patient-Care/Locations/HMC/About/Pages/Board-of-Trustees.aspx

Central Washington Medical Center:  http://www.cwhs.com/Content.aspx?id=71&terms=board%20of%20directors

Valley Medical Center:  https://www.valleymed.org/About-Us/Meet-the-Board/

Providence Health System:  This is more difficult since it is a health system, and there is a system board, as well as a local board, but here is Spokane: http://washington.providence.org/donate/providence-health-care-foundation-eastern-wa/board-of-directors/

Mid Valley Medical Center, Omak http://www.mvhealth.org/leadership

Forks Community Hospital, Forks, http://www.forkshospital.org/board-minutes

What We Need to Do

As members of Boards of Trustees, Commissioners, you need to ask the hard questions.  What value and outcomes are you getting in your community for the salaries you are paying your executives?  Are they improving patient care? What are patient outcomes? How many readmissions do you have that may have been avoided? How are you doing in managing hospital infections? How much uncompensated care does the hospital provide as compared to other hospitals in the community? This, of course, would not apply to communities such as Omak or Forks where they are the only hospital.

Certainly the choices in Omak and Forks are different than the ones in Tacoma and Seattle, but the question is, how do we hold our health care institutions accountable?

I believe, but I do not know for certain, that many Boards of Trustees are paid to serve on these Boards.  If you are paid to serve, who is going to ask the hard questions?  Who is going to ask about outcomes, readmission rates, infection control, necessary or unnecessary surgeries?

Certainly the problems in Forks, Omak and other disproportionate share rural hospitals are different from an urban Swedish or Evergreen.  But we all need to be smarter about health care.   I offer two sites in Washington State that are dealing with documented health care outcomes as determined voluntarily by community practicing doctors:  http://www.qualityhealth.org and its respective programs and the Bree collaborative:  http://www.hta.hca.wa.gov/bree.html

As patients and consumers, we need to hold the Boards of Directors/Trustees accountable.  Your doctor determines where you go, because of admitting privileges and insurance contracts.  Ask him or her why they chose to work with the hospital they use.  Talk to the hospital board of director members.  Look at the outcomes from facility to facility.

I don’t know how many states require hospitals to report their compensation.  But it is time we had community conversations about what we expect from these institutions in return for our community investments.

I am not the only person looking into this.  

Here are some articles by Kaiser Health News:

http://www.kaiserhealthnews.org/Stories/2013/June/06/hospital-ceo-compensation-mainbar.aspx?utm_source=intop&utm_medium=email&utm_campaign=062013

http://www.kaiserhealthnews.org/Stories/2013/June/06/hospital-ceo-compensation-chart.aspx

Kathleen O’Connor © June 21, 2013

About Kathleen

Kathleen O’Connor: 30+ year health care consumer advocate, non-profit executive and author. For more information about Kathleen, please see "About" on the main content bar above.
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