New York's non-profit salary cap will go into effect in July, but many hospital executives with high compensation figures may be exempt, according to a New York World report.
In January 2012, Gov. Andrew Cuomo proposed a $199,000 annual salary cap for executives of state non-profit organizations and hospitals. Under his executive order, that cap stood, and those organizations would also be banned from using more than 25 percent of their state-issued revenue for administrative overhead, eventually dropping to 15 percent by 2015.
The kicker is that the cap will only affect organizations and hospitals that receive 30 percent or more of their annual revenue from state funding, like Medicaid. According to the New York World's analysis of New York City's 31 non-profit hospitals, only eight hit that Medicaid threshold, and at most 10 hospitals would be subject to the salary cap when factoring in other state monies. In addition, several rounds of revisions on the salary cap exempted certain businesses, individuals and services.
The result is executives such as Steven Safyer, MD, CEO of Montefiore Medical Center in the Bronx, who received more than $4.6 million in salary, bonuses and deferred pay in 2011, would not be held to the salary cap because Medicaid and other state funds are only 27 percent of the medical center's revenue.
"The thing has been so gerrymandered that the big providers have gotten the outs that they're looking for and won't feel an impact," Doug Sauer, CEO of the New York Council of Nonprofits, told the New York World.
However, supporters of the regulations said they will still keep some salaries in line while also revealing "that 99.9 percent of non-profit executives are paid correctly," according to the report.
In January 2012, Gov. Andrew Cuomo proposed a $199,000 annual salary cap for executives of state non-profit organizations and hospitals. Under his executive order, that cap stood, and those organizations would also be banned from using more than 25 percent of their state-issued revenue for administrative overhead, eventually dropping to 15 percent by 2015.
The kicker is that the cap will only affect organizations and hospitals that receive 30 percent or more of their annual revenue from state funding, like Medicaid. According to the New York World's analysis of New York City's 31 non-profit hospitals, only eight hit that Medicaid threshold, and at most 10 hospitals would be subject to the salary cap when factoring in other state monies. In addition, several rounds of revisions on the salary cap exempted certain businesses, individuals and services.
The result is executives such as Steven Safyer, MD, CEO of Montefiore Medical Center in the Bronx, who received more than $4.6 million in salary, bonuses and deferred pay in 2011, would not be held to the salary cap because Medicaid and other state funds are only 27 percent of the medical center's revenue.
"The thing has been so gerrymandered that the big providers have gotten the outs that they're looking for and won't feel an impact," Doug Sauer, CEO of the New York Council of Nonprofits, told the New York World.
However, supporters of the regulations said they will still keep some salaries in line while also revealing "that 99.9 percent of non-profit executives are paid correctly," according to the report.
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