Compensation Issues

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Executives at Erlanger Health System in Tennessee Denied Bonuses for 2011

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Executives at Chattanooga, Tenn.-based Erlanger Health System will not receive bonuses based on the health system's fiscal year 2011 results after the board of trustees decided to implement stricter bonus criteria, according to a Chattanooga Times Free Press report.

In FY 2009, Erlanger made a profit of $10.8 million and dished out $1.7 million in bonuses to management-level employees and executives. In FY 2010, it made a profit of $8.6 million and doled out $1.9 million in bonuses. This past fiscal year, Erlanger made a profit of $5.4 million, according to the report.

Kim White, chairwoman of Erlanger's management and board evaluation committee, said in the report the trustees decided to put more emphasis on the health system's operating margin. Specific bonus criteria included an operating margin of 30 percent, $12 million in total profit and a 25-percent increase in admissions, among others.

Recently, outgoing Erlanger CEO Jim Brexler and former CEO of Erlanger at Hutcheson Charles Stewart both had their severance packages rejected.

Related Articles on Hospital Executive Bonuses:

Several Former Cincinnati-Area Hospital CEOs Had Seven-Figure Compensation

California's Tri-City Medical Center CEO Receives Second Raise

University of Michigan Hospitals CEO Doug Strong's 2011 Salary Reaches $612k

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