Conn. legislation proposes capping nonprofit hospital CEO pay at $500k

Amid increasing acrimony over hospital funding in the Connecticut state budget, a legislator has proposed mandating nonprofit hospitals that pay administrators more than $500,000 per year pay municipal property taxes, according to the Greenwich Time.

The legislation was introduced by state Rep. Susan Johnson (D-Windham), who reasoned that nonprofit hospitals that pay executives more than $500,000 annually can afford to contribute to their communities by paying property taxes.

The proposed bill is consistent with the viewpoint expressed by Connecticut Gov. Dannel P. Malloy (D), who argues nonprofits that provide their executives with exorbitant pay do not function as nonprofits, according to the report. Hospitals have argued that the state consistently underpays them on Medicaid reimbursement and overtaxes them.

"We've been fighting for the hospitals at the Capitol to make sure they are adequately funded, but I kept hearing about administrators' salaries and how they're making a few million dollars a year," Rep. Johnson said, according to the report. "Having a cap here will help us provide more money to town services and educational services, particularly in these areas where the hospitals are."

The Connecticut Hospital Association opposes the proposed legislation, arguing it would impede hospitals' ability to attract executive talent, according to the report.

More articles on compensation: 
IU Health raises minimum wage to $11
Performance-based pay isn't suited for executives: Here's why
Infographic: 9 changes in executive incentive plans from 2005 to 2015

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.


Top 40 Articles from the Past 6 Months