Care Quality Plays Small Role in HCA Executive Bonuses

The compensation committee of Nashville, Tenn.-based Hospital Corporation of America has approved the 2014 bonus program for the hospital's top executives, but quality-of-care measures represent a small portion of the potential payouts.

According to a filing with the Securities and Exchange Commission, anywhere from 85 to 90 percent of executive bonuses for this year will be based on EBITDA, which is a measure of profitability. The remaining 10 to 15 percent of incentives will be weighted on three quality-of-care metrics: hospital-acquired conditions (including central line-associated blood stream infections), core measures (like heart attack metrics) and patient experience (HCAHPS scores).

Milton Johnson, president and CEO of HCA, could make 140 percent or more of his base salary if he meets or exceeds defined targets. Last year, Mr. Johnson had a base salary of about $900,000, but that is expected to rise this year. Other target bonus awards for HCA executives this year include:

•    Samuel Hazen, president of operations: 90 percent of base salary
•    Richard Bracken, chairman and former CEO: 75 percent of base salary
•    William Rutherford, CFO: 75 percent of base salary
•    Jonathan Perlin, MD, CMO: 75 percent of base salary
•    Jon Foster, president of HCA's American Group: 75 percent of base salary

If each executive met his target, incentives could surpass $4 million or $5 million. HCA will dish out the 2014 bonuses early in 2015.

More Articles on Hospital Executive Compensation:
4 Hospital Executive Positions With the Highest Salary Raises
Transactions Lead to Cash Bonuses for Top IASIS Executives
Retired HCA CEO Richard Bracken Made $16.5M in 2013

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