As Providence, R.I., approaches bankruptcy, the Hospital Association of Rhode Island said the city's non-profit hospitals cannot necessarily contribute funds to the budget even though some top executives are paid seven figures, according to a WPRI report.
The state's capital could go into bankruptcy by this June if it cannot stave off its $22.5 million budget deficit for this fiscal year. However, Ed Quinlan, president of the HARI, said hospitals play a big role in a community through uncompensated care and other benefits and need to be looked at beyond executive compensation. "Executive compensation is determined by hospital boards based on the financial performance of the hospital, based on the financial stability of the hospital. There's multiple factors," he said in the report.
Providence Mayor Angel Taveras plans to hold a meeting with hospital CEOs to go over the city's budget crisis. Mr. Quinlan said the city's hospitals could still chip in payments to the city, but "no one is establishing markers."
One example of hospital executive compensation is George Vecchione, CEO of Lifespan, a non-profit, five-hospital system based in Providence. Lifespan paid Mr. Vecchione roughly $9.5 million in fiscal year 2009. In 2008, he earned $3.2 million, according to the report.
The state's capital could go into bankruptcy by this June if it cannot stave off its $22.5 million budget deficit for this fiscal year. However, Ed Quinlan, president of the HARI, said hospitals play a big role in a community through uncompensated care and other benefits and need to be looked at beyond executive compensation. "Executive compensation is determined by hospital boards based on the financial performance of the hospital, based on the financial stability of the hospital. There's multiple factors," he said in the report.
Providence Mayor Angel Taveras plans to hold a meeting with hospital CEOs to go over the city's budget crisis. Mr. Quinlan said the city's hospitals could still chip in payments to the city, but "no one is establishing markers."
One example of hospital executive compensation is George Vecchione, CEO of Lifespan, a non-profit, five-hospital system based in Providence. Lifespan paid Mr. Vecchione roughly $9.5 million in fiscal year 2009. In 2008, he earned $3.2 million, according to the report.
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