A proposed bill in California that would require local healthcare districts to have written, transparent compensation contracts with their hospital CEOs is making its way through the Senate after it received unanimous support in the Assembly.
Assemblyman Luis Alejo (D-Salinas) created the bill, AB 2115, after his district's health system, Salinas Valley Memorial Healthcare System, awarded former CEO Sam Downing a $4.9 million retirement package last year in addition to his $150,000-per-year pension.
If the Senate passes the bill and Gov. Jerry Brown signs it into law, the compensation standards would go into effect Jan. 1, 2013.
Assemblyman Luis Alejo (D-Salinas) created the bill, AB 2115, after his district's health system, Salinas Valley Memorial Healthcare System, awarded former CEO Sam Downing a $4.9 million retirement package last year in addition to his $150,000-per-year pension.
If the Senate passes the bill and Gov. Jerry Brown signs it into law, the compensation standards would go into effect Jan. 1, 2013.
More Articles on California Hospital CEO Compensation:
El Camino Hospital Executive Salary Cap Proposal to Appear on November Ballot
California Bill Would Restrict Pay of Hospital District Executives
Audit: Salinas CEO, Board Members Had Financial Ties to Hospital Vendors