Compensation of hospital and health system CEOs has long been under the microscope of the public, and a community-based health group in Grand Rapids, Mich., believes better incentives must be a factor in their pay.
Lody Zwarensteyn, president of the Alliance for Health, which includes several Michigan hospitals and health systems, wrote an op-ed for the Grand Rapids Business Journal. He said oftentimes, hospital CEO salaries are not the issue — it's how hospitals arrive to those high figures.
He suggested hospital boards base CEO compensation on factors that are in the public's interest, such as patient/staff satisfaction, reducing readmission and being part of the broader community.
"My bet is that if you ask the customers, you would get some interesting ideas [for setting executive compensation]," Mr. Zwarensteyn wrote.
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