New York Gov. Andrew Cuomo recently released the state's budget proposal, which included a $199,000 salary cap of taxpayer money for executives of state non-profit organizations, but hospital CEOs could be able to work around that provision if the organization can provide a legitimate reason, according to a City & State report.
Ken Raske, president of the Greater New York Hospital Association, sent a memo out to member hospital CEOs detailing Gov. Cuomo's budget proposal. Within the memo, he wrote that although "reimbursement will not be provided for compensation paid to any provider executive in excess of $199,000 per year…agency commissioners would have the discretion to adjust this figure annually subject to the budget director's approval within certain defined parameters," according to the report.
If hospitals are able to show "good cause" for the surplus compensation and receive approval from the state, CEOs may be able to receive a waiver from compliance with this requirement.
Several New York hospital CEOs have been criticized recently for exorbitant compensation figures. Linda Brady, president and CEO of Kingsbrook Jewish Medical Center in Brooklyn, earned nearly $4 million in total compensation in 2009, more than any other non-profit hospital executive in the state. Four New York non-profit hospital CEOs — Herbert Pardes, MD, of NewYork-Presbyterian Hospital; Kenneth Davis, MD, of Mount Sinai Hospital; Michael Dowling of North Shore-Long Island Jewish Health System; and Louis Shapiro of Hospital for Special Surgery — also received at least $1 million in bonuses in 2010.
Ken Raske, president of the Greater New York Hospital Association, sent a memo out to member hospital CEOs detailing Gov. Cuomo's budget proposal. Within the memo, he wrote that although "reimbursement will not be provided for compensation paid to any provider executive in excess of $199,000 per year…agency commissioners would have the discretion to adjust this figure annually subject to the budget director's approval within certain defined parameters," according to the report.
If hospitals are able to show "good cause" for the surplus compensation and receive approval from the state, CEOs may be able to receive a waiver from compliance with this requirement.
Several New York hospital CEOs have been criticized recently for exorbitant compensation figures. Linda Brady, president and CEO of Kingsbrook Jewish Medical Center in Brooklyn, earned nearly $4 million in total compensation in 2009, more than any other non-profit hospital executive in the state. Four New York non-profit hospital CEOs — Herbert Pardes, MD, of NewYork-Presbyterian Hospital; Kenneth Davis, MD, of Mount Sinai Hospital; Michael Dowling of North Shore-Long Island Jewish Health System; and Louis Shapiro of Hospital for Special Surgery — also received at least $1 million in bonuses in 2010.
Related Articles on New York Hospital Executive Pay:
Staten Island University Hospital CEO's Pay Tops $1M, Earns Task Force Scrutiny
New York Non-Profit Healthcare Executives Earned High Salaries in 2010
All New York State Salaries Now Listed Online